If a person borrows $3,000 at 8% annual interest and never makes any payments, how much will the loan balance be after three years?
A) $3,720
B) $3,779.14
C) $3,977.41
D) $7,239.27

Question

Quizplus · Accepted Answer

The correct answer is B: $3,779.14.The formula for calculating the future value of a loan is:FV = PV * (1 + r)^nwhere:FV is the future value of the loanPV is the present value of the loanr is the annual interest raten is the number of yearsIn this case, the present value of the loan is $3,000, the annual interest rate is 8%, and the number of years is 3. Plugging these values into the formula, we get:FV = $3,000 * (1 + 0.08)^3FV = $3,000 * (1.259712)FV = $3,779.14Therefore, the loan balance after three years will be $3,779.14.

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