A Loan of $12,000 Is Taken Out Today at a Simple

question 16

Multiple Choice

A loan of $12,000 is taken out today at a simple interest rate of r = 15%.It is repaid with a payment of $200 in 3-months,$6000 in 6-months (from today) and the balance,X,due in 11 months (from today) .What is the value of X using the declining balance method?

• A)$7055.00
• B)$7131.25
• C)$7118.75
• D)$7128.71

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