Background Info: Tom finds a second personal loan option. This loan would also require him to repay the principal in one lump sum after three years.
Loan Option B
Principal: $9,000
Type of Interest: Compound Interest
Interest Rate: 8%
Rate of Accrual: Once per year
Use the formula for annual compound interest.
A = P (1 + r/n) ^nt
Remember, A refers to the total amount owed.
Calculate the total amount that Tom would repay.
$10,337
$11,337
$12,337
$13,337
Answers (2)
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “Background Info: Tom finds a second personal loan option. This loan would also require him to repay the principal in one lump sum after ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers
You Might be Interested in
Select the benefit most likely to be received from the following healthy relationships. The benefit for two parents raising a child includes experiencing higher academic achievementdisplaying fewer behavioral problemsbeing happier as a couple.
Answers (1)
May 1: Prepaid rent for three months, $3,000 May 5: Received and paid electricity bill, $130 May 9: Received cash for meals served to customers, $1,870 May 14: Paid cash for kitchen equipment, $2,990 May 23: Served a banquet on account, $2,520 May
Answers (1)
Knowles & Foreman Company took the following data from its income statement at the end of the current year:Per-unit product cost$35Gross margin percentage41.
Answers (1)
One year ago, you purchased a 7 percent coupon bond with a face value of $1,000 when it was selling for 102.5 percent of par. Today, you sold this bond for 104 percent of par. What is your total dollar return on this investment?
Answers (1)
has a share price of $154 and an expected EPS of $8 next year. The company currently pays out 100% of earnings as dividends, but is considering a new policy of paying out just 70% of dividends. Retained earnings are expected to earn a return of 5.9%.
Answers (1)
New Questions in Business
Using which social engineering principle might an attacker impersonate a ceo of a company?
Answers (1)
In the probabilistic approach to project network analysis, the time estimate annotated tm for any activity is the: Multiple Choice: O mean time. O marginal time. O mode time. O most likely time. O median time.
Answers (1)
When the balance of the income summary account is a debit, the entry to close this account is: a. debit capital; credit income summary. b. debit income summary; credit revenue. c. debit revenue; credit income summary. d.
Answers (1)
Identify all of the correct statements: a. To motivate managers in non-profit firms, no employee incentives are needed b. Managers naturally seek to maximize shareholders' wealth c.
Answers (1)
Which best explains why the supply of housing doesn't automatically increase to meet rising demand?
Answers (2)