If a Person Borrows $3,000 at 8% Interest and Never

question 98

Multiple Choice

If a person borrows $3,000 at 8% interest and never makes any payments, how much will the loan balance be after three years?

• A) $3,720
• B) $3,779.14
• C) $3,977.41
• D) $7,239.27

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Definitions:

Flow Variable

A variable that is measured over a specific period of time, such as income or expenditure, which may change from one period to the next.

Federal Government

The national government of a federal state, which holds the authority to govern on matters that affect the entire country, differentiated from state or local governments.

Sales Tax

A tax imposed on sales of goods and services, usually calculated as a percentage of the purchase price paid by the consumer.

Country Population

The total number of people living within the borders of a specific country at a given time.