A Man Borrowed $3000 at 10% Interest Compounded Annually

question 252

Multiple Choice

A man borrowed $3000 at 10% interest compounded annually. If he paid off the loan in full at the end of 4 years, how much did he pay? Round your answer to the nearest cent.

• A) $4200.00
• B) $4392.30
• C) $3300.00
• D) $1392.30

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Definitions:

Quarterly Cash Payments

Regular financial distributions made by a company to its shareholders every three months.

Shareholders

Individuals or entities that own shares in a corporation, giving them a claim on part of the company's assets and earnings.

Regular Dividends

Payments made by a corporation to its shareholders, usually as a distribution of profits on a fixed schedule.

Hedge Funds

Investment funds that employ various strategies to earn active returns for their investors, including leveraging, derivatives, and short selling.