If a student borrows $20,000 to start a business as a 5 year,10% loan,the annual payment is
A) $2,000.00
B) $3,275.95
C) $4,000.00
D) $5,275.95
E) None of these.

Name: If a student borrows $20,000 to start a business as a 5 year,10% loan,the annual payment is A) $2,000.00 B) $3,275.95 C) $4,000.00 D) $5,275.95 E) None of these.
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Question

Quizplus · Accepted Answer

The annual payment for a 5-year, 10% loan of $20,000 can be calculated using the formula for an annuity. The correct annual payment is approximately $5,275.95.

If a Student Borrows $20,000 to Start a Business as a 5