A Woman Borrowed $30,000 at 2% Interest Compounded Annually

question 568

Multiple Choice

A woman borrowed $30,000 at 2% interest compounded annually. If the loan was paid off in one lump sum at the end of 6 years, how much did she pay?

• A) $33,784.87
• B) $33,600.00
• C) $30,600.00
• D) $3784.87

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Definitions:

Trickle-Down Redistribution

An economic theory suggesting that benefits provided to the wealthy or upper economic classes will eventually "trickle down" to benefit poorer members of society.

Potlatch Reciprocity

A ceremonial feast practiced among indigenous peoples of the Pacific Northwest Coast of America, characterized by the generous giving of gifts which reciprocally establish or reinforce social status.

Basic Unit

The fundamental component or building block within a structured set, often referring to the simplest division in a system's hierarchy.

Cooperative Work

Efforts undertaken jointly by a group of people or entities to achieve a common goal, often emphasizing teamwork and shared responsibilities.