Because of the Compounding Effect,a $7,500 Loan at 12 Percent

question 4

True/False

Because of the compounding effect,a $7,500 loan at 12 percent interest can grow to $23,293.86 after 10 years.

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Definitions:

Intuiting

The ability to understand or know something immediately, without the need for conscious reasoning; a gut feeling or instinct.

Cognitive Dissonance

A psychological discomfort experienced when an individual holds two or more contradictory beliefs, ideas, or values at the same time.

Escalation

The process of something becoming or being made more intense, severe, or serious.

Optimism

A mental attitude reflecting a belief or hope that the outcome of some specific endeavor, or outcomes in general, will be positive, favorable, and desirable.