4% of the balance of $795 is $31.80. This amount is higher than $25, so is the amount of the minimum payment.
The appropriate choice is ...
.... $31.80
You can just look at it and already tell it’s B
The answer is x=1.3
You are welcome
Given:
principal = 7,000
interest rate = 5% compounded annually
term = 3 years
A = P (1 + r/n)^nt
A = future amount to be received by First Consumer Bank
P = loan principal
r = rate
n = number of times compounded in a year
t = term
A = 7,000 ( 1 + 5%/1)^1x3
A = 7,000 (1.05)³
A = 7,000 (1.157625)
A = 8,103.375
First Consumer Bank will receive 8,103.375 from Jane after lending 7,000 for 3 years compounded annually at 5%.
You'd say that although that seems correct, since there's a 50/50 chance of each outcome, it doesn't necessarily guarantee that it will ALWAYS be 50/50. However, her guess has the highest probability of occurring, or in other words, its more likely that it'll be somewhere close to 240 rather than in the 100's or 300's.