Suppose Paul Borrows $4,000 for One Year from His Grandfather

question 97

Multiple Choice

Suppose Paul borrows $4,000 for one year from his grandfather who charges Paul 7% interest. At the end of the year Paul will have to repay his grandfather:

• A) $4,280
• B) $4,290
• C) $4,350
• D) $4,820

---

Definitions:

Relative Prices

The price of one good or service compared to another, usually considered in terms of opportunity cost.

Price Of X

The amount of money required to purchase a unit of product X in a market.

Entire Income

This term does not correspond to a specific economic concept; it might refer to total earnings or revenue of an individual or entity, but more context is needed for a precise definition. NO.

Uglifruits

A type of citrus fruit known for its unique appearance but sweet and tangy taste.