On the Day You Entered College You Borrowed $30,000 from Your

question 132

Multiple Choice

On the day you entered college you borrowed $30,000 from your local bank.The terms of the loan include an interest rate of 4.75 percent.The terms stipulate that the principal is due in full one year after you graduate.Interest is to be paid annually at the end of each year.Assume that you complete college in four years.How much total interest will you pay on this loan?

• A)$7,266.67
• B)$7,400.00
• C)$7,125.00
• D)$8,529.00
• E)$8,607.11

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