A Demand Loan for $8,000 with Interest at 16% Compounded

question 236

Multiple Choice

A demand loan for $8,000 with interest at 16% compounded quarterly was repaid after two years and eight months. What was the amount of interest paid?

• A) $4138.26
• B) $4155.67
• C) $5265.03
• D) $5236.19
• E) $2763.81

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Definitions:

Slope

The measure of the steepness of a line, typically represented as the ratio of the vertical change to the horizontal change between two points on the line.

Points

The basic unit of geometry, representing a location in space with no dimension.

Slope

In mathematics, specifically in algebra and geometry, it refers to the measure of the steepness or incline of a line, represented as a ratio of the vertical change to the horizontal change between two points on the line.

Passing Through

A term often used to describe a line or curve that goes through a specific point in a graph or geometric figure.