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

question 48

Multiple Choice

Sam has a loan that requires a single payment of $4,000 at the end of three 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:

Depreciation

The process of allocating the cost of a tangible or physical asset over its useful life, reflecting wear, tear, and obsolescence.

GDP Deflator

The GDP deflator is a measure of the level of prices of all new, domestically produced, final goods and services in an economy, acting as a gauge of inflation.

Real Per Capita GDP

The measure of a country's economic output that accounts for its number of people and adjusts for inflation, indicating the average economic well-being of its citizens.

Net Exports

The value obtained by subtracting a country's total value of imports from its total value of exports, representing a component of a country's GDP.