Assume That You Borrow $2,000 from Your Sister and That

question 3

Multiple Choice

Assume that you borrow $2,000 from your sister and that you will pay her back in one lump sum. She charges you 9 percent interest in year 1 and increases the rate by 1 percent per year until the loan is paid off. How much will you owe if you wait until year 3 to pay off the loan?

• A) $2,467.91
• B) $2,661.78
• C) $2,775.23
• D) $2,809.53

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Definitions:

American Indians

Indigenous peoples from the territories that are now within the boundaries of the United States.

African Americans

A term used to describe Americans of African descent, emphasizing their cultural, historical, and social experiences distinct from those of their ancestors on the African continent.

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A demographic group in the United States with cultural, historical, and familial ties to Mexico.

European Immigrants

individuals who have moved from European countries to live permanently in a different country.