On January 12, Alex Has Student Loans Totalling $14,000

question 91

Multiple Choice

On January 12, Alex has student loans totalling $14,000. Alex agreed to a $200 per month repayment schedule at which time the annual interest rate was 5.5% simple interest. Determine the balance of the loan at the end of January.

• A) $13,840.08
• B) $13,845.20
• C) $13,881.91
• D) $13,728.47
• E) $13,990.64

---

Definitions:

Hedging Instrument

Any financial derivative or other contract used to offset the risk of changes in the value of an asset, liability, or future transaction.

Hedged Item

An asset, liability, firm commitment, or anticipated transaction identified by an entity to manage risks through hedging activities.

Cash Flow Hedge

A form of hedge accounting that aims to offset exposures to variability in cash flows, attributable to a particular risk associated with a recognized asset or liability.

Forward Contract

A financial contract between two parties to buy or sell an asset at a specified future time at a price agreed upon at the time of the contract.