Suppose You Take Out a Loan from the Local Mob

question 110

Multiple Choice

Suppose you take out a loan from the local mob boss for $10,000.Being a generous banker,the mob boss offers you an APR of 60% with monthly compounding.The length of the loan is 3 years with monthly payments.However,you want to get out of this arrangement as quickly as possible.You decide to pay off whatever balance remains after the first year of payments.What is your remaining balance after one year?

• A) $8,124.46
• B) $8,339.13
• C) $9,233.06
• D) $9,342.47

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Definitions:

Gluskap

A mythical figure in the folklore of the Algonquin-speaking peoples of North America, often depicted as a hero or trickster who teaches and protects his people.

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Is the forcible capture of land and the economic and political domination of its inhabitants.

Stories

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