A Loan of $12,000 with Interest at 14% Compounded Annually

question 10

Multiple Choice

A loan of $12,000 with interest at 14% compounded annually is to be amortized by equal payments at the end of each year for six years.
-How much interest is included in the third payment?

• A) $1,258.80
• B) $4,421.97
• C) $1,827.09
• D) $7,164.30
• E) $1,680.00

---

Definitions:

Inbreeding

The mating or breeding of closely related individuals, which can increase the chance of offspring inheriting genetic defects or disorders.

Genetic Diversity

The total number of genetic characteristics in the genetic makeup of a species, contributing to the species' ability to adapt to changing environments.

Survival Rate

The percentage of individuals still alive after a certain period of time or after a specific treatment.

Habitat Fragmentation

The process by which larger habitats are divided into smaller, isolated fragments, often leading to biodiversity loss and ecosystem disruption.