A Loan of $10,000 Is Being Taken Out Today

question 203

Multiple Choice

A loan of $10,000 is being taken out today. The interest rate is 9% compounded monthly. Equal payments are to be made two and five years from now. After the second payment is made in five years there will be a balance of $3,000 still owing on the loan. Calculate the size of the two equal payments.

• A) $4,790.21
• B) $5,482.35
• C) $5,692.38
• D) $6,014.19
• E) $4,747.27

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Definitions:

Prescribes Medication

The act of a licensed healthcare professional authorizing a drug or treatment for a patient to alleviate, treat, or manage a medical condition.

Major Depressive Disorder

A mental disorder marked by persistent depression and a lack of interest in activities, significantly impacting daily life.

Excessive Distress

An overwhelming and crippling level of emotional turmoil or strain.

Forms of Therapy

Various methods and approaches used in treatment to address mental health issues, ranging from psychotherapy to medication and alternative practices.