A company borrows $25,000 for 3 years at an interest rate of 7%. How much must it repay in a lump sum at the end of the third year?  a. $26,750  b. $30,625  c. $32,000  d. $75,000

Brief Principles of Macroeconomics (MindTap Course List)
8th Edition
ISBN:9781337091985
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter9: The Basic Tools Of Finance
Section: Chapter Questions
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  1. A company borrows $25,000 for 3 years at an interest rate of 7%. How much must it repay in a lump sum at the end of the third year?
         a. $26,750

         b. $30,625

         c. $32,000

       d. $75,000

 

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