This morning, you borrowed $14,700 at an APR of 8.9 percent. If you repay the loan in one lump sum three years from today, how much will you have to repay? $15,514.47 O $18,984.58 O $19,022.33 O $15,324.60 O None of these answers are correct

This morning, you borrowed $14,700 at an APR of 8.9 percent. If you repay the loan in one lump sum three years from today, how much will you have to repay? $15,514.47 O $18,984.58 O $19,022.33 O $15,324.60 O None of these answers are correct

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter11: Capital Budgeting Decisions

Section: Chapter Questions

Problem 8EB: You put $600 in the bank for 3 years at 15%. A. If Interest Is added at the end of the year, how...

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Concept explainers

Cost of Credit

The cost of credit is an extra amount that the borrower has to pay besides the loan amount. These credit charges may vary from loan to loan. The cost of credit includes interest charges, maintenance charges, and arrangement charges. Some of the costs are mandatorily collected by the lender based on the loan amount and tenure of the loan. The cost of credit is also called finance charges of the credit.

Question

This morning, you borrowed $14,700 at an APR of 8.9 percent. If you
repay the loan in one lump sum three years from today, how much will
you have to repay?
$15,514.47
$18,984.58
O $19,022.33
$15,324.60
O None of these answers are correct

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