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

question 36

Multiple Choice

If a person borrows $3,000 at 8% interest and never makes any payments, how much will the loan balance be after 10 years?

• A) $4,500
• B) $5,400
• C) $6,476.77
• D) $7,676.67

---

Definitions:

Management Services

Professional services provided to a business by external or internal consultants focused on optimizing operational efficiency, strategy implementation, and overall organizational performance.

Accrued Fees

Fees that have been incurred but not yet paid, recognized in the financial statements according to the accrual basis of accounting.

Dividends Paid

The portion of a company's earnings distributed to its shareholders as a return on their investment.

Consolidation Adjustments

Journal entries made to eliminate the effects of intercompany transactions when preparing consolidated financial statements.