Login
Premium
Home Question Bank Economics
Question
upstudy study bank question image url

2 Multiple Choice 5 points
Mark took out a loan for to purchase a truck. At an interest rate of compounded monthly, how long did it take Mark to pay off his loan if he paid a total of
?
7
8
5
6

Ask by Davies Kirk. in the United States
Jan 24,2025

Upstudy AI Solution

Tutor-Verified Answer

Answer

It took Mark 6 years to pay off his loan.

Solution

Sign in to Unlock Answers for Free!

A Learning Platform Trusted by Millions of Real Students and Teachers.

star-icon Unlock

Answered by UpStudy AI and reviewed by a Professional Tutor

Extra Insights

To determine how long it took Mark to pay off his loan, we can use the formula for compound interest, which is given by:
where:
  • is the amount of money accumulated after n years, including interest.
  • is the principal amount (the initial loan balance).
  • is the annual interest rate (decimal).
  • is the number of times that interest is compounded per year.
  • is the number of years the money is borrowed for.
In your case:
  • (since the interest is compounded monthly)
We need to solve for :
  1. Rearranging the formula gives us:
Plugging in the values:
  1. Simplifying the calculations:
Now calculate:
  • and
  • Then divide and multiply by to find .
Without doing the exact calculations, we can estimate that will be around 6 to 7 years based on the options provided. Thus, the answers can be narrowed down, and checking with number using a calculator can help find the exact answer.
In this case, if you check the calculations, you’ll find that it likely falls to 6 or 7 years. The answer is likely 6 years.

Related Questions

Why does the author discuss the function of the U.S. Treasury Department? (A) to examine the purpose of the 1913 Federal Reserve Act (B) to note the influence of Hamilton in creating the U.S. Treasury C) to point out its differences from the Federal Reserve (D) to explain the limitations of presidential and congressional power.
Economics United States Mar 31, 2025
\begin{tabular}{l|l}\multicolumn{1}{l}{ A variable that can't be accounted for is } & The author backs up the statement that the economy \\ can be unpredictable by pointing out that \\ a natural disaster such as a hurricane. As the & result of a hurricane, demand is guaranteed \\ to increase in a way that could not have been & (A) banking panics occur when confidence in the financial \\ system is strong. \\ predicted because the flow of goods into & (B) natural disasters can affect the demand for goods and \\ disrupt production. \\ impacted areas is blocked. If crops or power \\ facilities like oil refineries are damaged, then & C. customers are more willing to buy something when \\ interest rates are low. \\ demand is also affected. & (D) inflation occurs when prices for goods and services \\ decrease too quickly. \end{tabular}
Economics United States Mar 31, 2025
The economy can be compared to a soccer game because both (A) are unaffected by weather conditions. (B) are subject to many variable factors. (C) have outcomes that can be predicted. (D) are tightly regulated by laws.
Economics United States Mar 31, 2025
The cost of goods sold for Home Depot last year amounted to $3,530,800 and the average inventory at cost was $1,$74,182. The published inveriory turnover at cost is 5,2 . Calculate the inventory turnover at cost, and if it is less than the published rate, calculate the target average inventory at cost. Select one: a. $302,727 b. $679,000 (c. $490,864 (d. $981,727
Economics United States Mar 31, 2025
Prepaid expenses at the beginning of the year relates to security fees that was paid in the previous financial year. As per the contract with ADL, security fees are payable half yearly in advance on 1 July and 1 January respectively. The security fee contract also makes provision for an annual increase on 1 July of 15% of the monthly premium.
Economics South Africa Mar 31, 2025

Latest Economics Questions

/ Chapter 5 - Elasticity / 5.1: Calculating Demand and Supply Elasticity 5.1: Calculating Demand and Supply Elasticity ion 3 mplete d out of 9 ion Price: $4.0 Short-Term Demand Price $6.28.8 million units Answer: ◻ Check
Economics Canada Mar 31, 2025
why is it helpful to a Roth Ira? is money saved in the bank Is a retirement plan, where money grows, and that is tax free by the age of 59.5
Economics United States Mar 31, 2025
\begin{tabular}{l|l}\multicolumn{1}{l}{ A variable that can't be accounted for is } & The author backs up the statement that the economy \\ can be unpredictable by pointing out that \\ a natural disaster such as a hurricane. As the & result of a hurricane, demand is guaranteed \\ to increase in a way that could not have been & (A) banking panics occur when confidence in the financial \\ system is strong. \\ predicted because the flow of goods into & (B) natural disasters can affect the demand for goods and \\ disrupt production. \\ impacted areas is blocked. If crops or power \\ facilities like oil refineries are damaged, then & C. customers are more willing to buy something when \\ interest rates are low. \\ demand is also affected. & (D) inflation occurs when prices for goods and services \\ decrease too quickly. \end{tabular}
Economics United States Mar 31, 2025
In the past, the United States exported more goods and services than it imported. However, since 1975 it has bought more goods from other nations than it has sold and thus has a trade deficit. Over the past few years, the United States ran its highest trade deficits with China. Still the United States remains one of the world's largest exporting nations even though the U.S. exports a much lower percentage of its products than other countries, such as China, Japan and Germany. Improving that percentage by expanding exports is a goal the U.S. hopes to achieve by 2015 . Source: William Nickels, et al. Understanding Business, 10e. (i) Instructions Goods exported from the U.S. used to be more numerous than those imported into this country. But starting in 1975, the U.S. has had a trade deficit, especially with China in recent years. However, even though the U.S. exports a relatively low percentage of its goods, it is still among the most prolific exporters in the world, and the quality of its exports is unsurpassed. By 2015, the U.S. would like to export a larger percentage of its goods in order to become an even more influential world superpower (Nickels et al., 2014).
Economics United States Mar 31, 2025
Prepaid expenses at the beginning of the year relates to security fees that was paid in the previous financial year. As per the contract with ADL, security fees are payable half yearly in advance on 1 July and 1 January respectively. The security fee contract also makes provision for an annual increase on 1 July of 15% of the monthly premium.
Economics South Africa Mar 31, 2025
Prev Next
Try Premium now!
Try Premium and ask Thoth AI unlimited math questions now!
Maybe later Go Premium
Study can be a real struggle
Why not UpStudy it?
Select your plan below
Premium

You can enjoy

Start now
  • Step-by-step explanations
  • 24/7 expert live tutors
  • Unlimited number of questions
  • No interruptions
  • Full access to Answer and Solution
  • Full Access to PDF Chat, UpStudy Chat, Browsing Chat
Basic

Totally free but limited

  • Limited Solution
Welcome to UpStudy!
Please sign in to continue the Thoth AI Chat journey
Continue with Email
Or continue with
By clicking “Sign in”, you agree to our Terms of Use & Privacy Policy
Pop-up title
Lorem ipsum dolor sit amet, te everti debitis assentior nam, ne illum utroque principes sed. Ridens phaedrum an vix, qui in dolore appareat.