Mark Became Overextended in His Gambling Debt and Could Not

question 150

Multiple Choice

Mark became overextended in his gambling debt and could not pay $750 he owed. The loan person said he could have five weeks to pay off the $750 at 8% interest per week compounded continuously. How much will Mark have to pay at the end of the five weeks? Please round the answer to the nearest hundredth.

• A) $1,118.87
• B) $1,119.07
• C) $1,119.02
• D) $1,118.97
• E) $1,118.92

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Definitions:

Debt Management

The process of strategizing to reduce or pay off outstanding debts.

Profitability

A metric or concept that measures the ability of a company or business to generate income relative to its revenue, assets, or shareholders' equity, typically expressed as a percentage.

Debt to Stockholders' Equity Ratio

A financial metric that shows the balance between the debt and equity shareholders have employed to fund a company's assets.

Gross Profit Ratio

The Gross Profit Ratio is a financial metric that compares gross profit to net sales, expressed as a percentage, indicating the efficiency of a company in managing its production and labor costs.