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Sam Lent His Son $30,000 to Help Finance His Education

Question 3

Multiple Choice

Sam lent his son $30,000 to help finance his education.The son must pay back the principal, but no interest, in 6 years.If Sam could have earned 5% in a GIC over the same period, the cost of their gift to their son is closest to:


A) $1,500.
B) $9,000.
C) $10,146.
D) $10,202.

Correct Answer:

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