Solve the Problem. -Hector Borrows $2,500 at a Rate of 9% Compounded Monthly

question 40

Multiple Choice

Solve the problem.
-Hector borrows $2,500 at a rate of 9% compounded monthly. Find how much Hector owes at the end of 4years. A = final amountP = $2,500 (the amount borrowed) r = 9% = 0.09 (the annual rate of interest) n = 12 (the number of times interest is compounded each year) t = 4 (the duration of the loan in years)

• A)$3,578.51
• B)$3,936.36
• C)$120,900.00
• D)$2,575.85

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Definitions:

Monopoly Output

The quantity of goods or services produced by a monopoly, which is determined at the point where the monopoly's marginal cost meets the market demand curve.

Duopolist

One of two firms in a market where only two firms offer a particular product or service, leading to a specific form of competition.

Cartel Agreement

An arrangement among competing firms to control prices or exclude entry of a new competitor in the market, often through setting production levels or dividing markets.

Nash Equilibrium

A concept in game theory where no player can benefit by unilaterally changing their strategy if the strategies of the others remain unchanged.