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

---

Definitions:

Short-Run Supply Curve

A graphical representation showing the quantity of goods a firm is willing to supply at different price levels in the short term, holding some inputs fixed.

Shutdown Point

The level of operation at which a firm's total revenue is equal to its total variable costs, below which the firm should cease production to minimize losses.

Point

A specific location or position in a spatial setting or within a set of data.

Market Price

The price at which goods or services are currently sold on the open market.