If a person borrows $3,000 at 8% interest and never makes any payments, how much will the loan balance be after 10 years?
A) $4,500
B) $5,400
C) $6,476.77
D) $7,676.67

Question

Quizplus · Accepted Answer

The loan balance can be calculated using the formula for compound interest: A = P(1 + r/n)^(nt). Here, P = $3,000, r = 0.08, n = 1, and t = 10. Plugging in these values, A = 3000(1 + 0.08/1)^(1*10) = 3000(1.08)^10 = $6,476.77.

If a Person Borrows $3,000 at 8% Interest and Never