To Pay for College, a Student Borrows $5,000 Interest-Free from His

question 186

Multiple Choice

To pay for college, a student borrows $5,000 interest-free from his father.If he pays his father back at the rate of $200 per month, how much will he still owe after 11 months?

• A) \(\quad \$ 1,800\)
• B) \(\$ 3,130\)
• C) \(\quad \$ 2,800\)
• D) \(\quad \$ 2,200\)
• E) none of the above

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Definitions:

Spillover Benefits

Positive effects or advantages that result from a product, event, or activity, affecting those who are not directly involved.

Price

The total funds necessary to acquire a commodity, service, or asset.

Output

The amount of goods or services produced by a business, industry, or economy.

Production and Pricing

The process of determining the cost and price for goods or services created by a business.