You Borrow $10,000 and Will Pay Back the Entire Amount

question 67

Multiple Choice

You borrow $10,000 and will pay back the entire amount in 10 years. You are charged 6 percent interest per year. How much interest do you pay on this loan?

• A) $6,000.00
• B) $7,715.61
• C) $7,908.48
• D) $11,193.97

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Definitions:

Equitable

Characterized by fairness or impartiality; just and right in considering the rights and responsibilities of all parties involved.

Efficiency

The extent to which resources are used optimally to achieve the desired output, often maximizing productivity while minimizing waste.

Output Market

A marketplace in which finished goods and services are traded, involving businesses selling to consumers or other businesses.

Marginal Rate

The rate of change in a quantity or cost in response to a one-unit change in another variable.