Question

31) Owen expects to receive $30,000 at the end of next year from a trust fund. If a bank loans money at an interest rate of 8.2%, how much money can he borrow from the bank on the basis of this information? A) $2460 B) $13,863 C) $27,726 D) $32,460

Answer 1

Answer:

c. $27,726

Explanation:

The money he can borrow using this information is

=30,000 /( 1+8.2%)

=30,000 / (1+0.082)

=30,000 / 1.082

=27726.432

=$27,726