If the Principal of a Bank Loan Is $20,000, the Interest

question 2

Multiple Choice

If the principal of a bank loan is $20,000, the interest rate is 9% compounded annually and the maturity date is in 10 years, what would the total payment be if none of the principal was paid back before the maturity date?

• A) $4,734
• B) $51,880
• C) $53,640
• D) $43,440
• E) $47,348

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