A Demand Loan for $8,000 with Interest at 16% Compounded

question 236

Multiple Choice

A demand loan for $8,000 with interest at 16% compounded quarterly was repaid after two years and eight months. What was the amount of interest paid?

• A) $4138.26
• B) $4155.67
• C) $5265.03
• D) $5236.19
• E) $2763.81

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Definitions:

Confidence Interval

An interval of values within which there is a given level of confidence (e.g., 95%) where the population value lies.

Increased Accuracy

The enhancement of precision or correctness in measurement, observation, or analysis.

Simple Random Sampling

A method of selecting a sample in which every member of the population has an equal chance of being chosen.

Youngsters

Youngsters refers to children and teenagers, often implying a focus on their development, education, and socialization.