Suppose That You Need $4000 to Purchase Equipment

question 87

Multiple Choice

Suppose that you need $4000 to purchase equipment. If you are applying for a discounted loan at an interest rate of 5% per year for 3 years, how much do you need to borrow to cover the principal?

• A) $4000
• B) $4600
• C) $4705.88
• D) $4821.76

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Definitions:

Dual Labor Market

describes an economy divided into two segments: a primary sector with secure, well-paid jobs, and a secondary sector with insecure, poorly paid jobs.

Primary Labor Market

Refers to jobs that provide high wages, benefits, job security, and opportunities for advancement.

Occupations

Various kinds of jobs or professions individuals engage in to earn a living.

Legal Minimum Wage

The lowest hourly, daily, or monthly remuneration that employers are legally allowed to compensate workers.