You Received a $5,000 Loan at the End of Each

question 7

Multiple Choice

You received a $5,000 loan at the end of each of your four years of college. Aunt Rose agreed to pay off your loans at the end of your fourth year of school. How much will she have to pay? Assume a 4% interest rate compounded annually on student loans.

• A) $20,000.
• B) $21,235.
• C) $39,930.
• D) $50,000.
• E) None of the answers is correct.

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Definitions:

Spanish-Milled Silver Dollar

A widely recognized coin that was minted in the Spanish Empire following the introduction of the mechanical press, becoming an international standard for trade.

Pieces Of Eight

Historically referred to as Spanish dollars, these were silver coins that played a crucial role in world trade during the 17th and 18th centuries.

Fringe Lending

Lending practices occurring outside of traditional banking institutions, often associated with high-interest rates and less favorable terms for borrowers.

Sub-Prime Lending

Lending to individuals who have poor credit histories and are considered a higher risk to lenders.