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nadya68 [22]
3 years ago
7

Jay took out a small-business loan for 210,000. The terms of the loan are 5% annual interest for four years.

Mathematics
2 answers:
Marta_Voda [28]3 years ago
4 0
5% of 210000=
(210000/100)5= $10500 anually

so 4 years will be $42000

he'll pay 42000 + 210000
$252000
answer is B

Vladimir79 [104]3 years ago
4 0

I will assume that this is a simple interest. In this problem, you are asked to find the future value of the loan at the end of four years.

The formula in finding the future value of the loan is:

F = P (1 + rt)

Where F = future value of the loan

             P = principal amount of the loan

             r = simple interest rate

             t = time in years

Substituting the amounts given in the problem:

F = 210,000 (1 + 5%x4)

   = 210,000 (1.2)

   = 252,000

Therefore, Jay will pay back $252,000 by the end of four years.

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