Sam Has a Loan That Requires a Single Payment of $4,000

question 8

Multiple Choice

Sam has a loan that requires a single payment of $4,000 at the end of 3 years.The loan's interest rate is 6%,compounded semiannually.How much did Sam borrow?

• A)$3,358.40
• B)$4,000.00
• C)$3,660.40
• D)$4,776.40
• E)$3,350.00

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Definitions:

Unemployed

Refers to individuals who are without a job but are actively seeking work.

Contraction

The downturn of the business cycle, when real GDP is declining.

Recovery Phase

A period within the economic cycle where activity rebounds following a recession, characterized by increasing GDP, employment, and investment.

Expansion

In economics, expansion refers to a phase of the business cycle where the economy grows and output increases, often characterized by rising employment and income.