Kelsey Has a Loan That Requires a $25,000 Lump Sum

question 62

Short Answer

Kelsey has a loan that requires a $25,000 lump sum payment at the end of three years. The interest rate on the loan is 5%, compounded annually. How much did Kelsey borrow today?

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Definitions:

Sea Caves

Natural hollows formed by the wave action of the sea on weak points in coastal cliffs, known for their stunning landscapes and ecological habitats.

Marine Terraces

Flat, wave-cut platforms formed by the erosion of marine shores, marked by a rise in sea level or land level.

Sea Level Risen

The increase in the global average level of the oceans, attributed mainly to climate change and the melting of ice caps and glaciers.

Coastal Dunes

Natural accumulations of sand or sediment found along coastlines, formed by the wind and protecting inland areas from sea surges.