If You Borrow $20 000 for Four Years at an Interest

question 35

Multiple Choice

If you borrow $20 000 for four years at an interest rate of 7.23% per annum,with the interest compounding quarterly,how much will you have to pay at the end of the period?

• A) $21 485.68
• B) $26 442.06
• C) $25 784.00
• D) $26 638.29

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Definitions:

Pleasing

Evoking a sense of happiness or satisfaction.

Threatening

Describes a behavior or communication that implies harm or negative consequences, often used to intimidate or coerce.

Operant Conditioning

A learning process in behavioural psychology where the strength of a behavior is modified by reinforcement or punishment.

Classical Conditioning

A learning process that pairs a neutral stimulus with a stimulus that naturally produces a behavior, eventually causing the neutral stimulus to elicit that behavior on its own.