What amount would you borrow at 15% compounded annually if your loan payments are $3,800 per month for 10 years?
A) $235,535
B) $244,193
C) $318,782
D) $327,896
E) $378,625

Question

Quizplus · Accepted Answer

To find the loan amount, use the formula for the present value of an annuity. The monthly payment is $3,800, the annual interest rate is 15% (or 1.25% per month), and the number of payments is 120 (10 years). The calculation gives approximately $244,193.

What Amount Would You Borrow at 15% Compounded Annually If