If a Person Borrows $3,000 at 8% Annual Interest and Never

question 55

Multiple Choice

If a person borrows $3,000 at 8% annual interest and never makes any payments, how much will the loan balance be after 10 years?

• A) $4,500
• B) $5,400
• C) $6,476.77
• D) $7,676.67

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Definitions:

Formalization

The extent to which rules, procedures, and standards guide employee behavior within an organization.

Centralization

The concentration of decision-making authority at the top levels of an organizational hierarchy.

Vertical Division

The organizational structure where tasks are divided based on hierarchy and levels of authority, creating a top-down approach.

Labor

The physical or mental effort used in the production of goods and services, often referring to work or workforce in economic contexts.