Question

A homeowner borrows $65,000 to remodel their home. The loan is financed at a 2.3% interest rate, compounded quarterly. How much will the homeowner owe after 8 years? Group of answer choices $78,090 $65,023 $78,117 $67,300

Answer 1

A homeowner borrows $65,000 to remodel their home. The loan is financed at a 2.3% interest rate, compounded quarterly.

So we have to find 2.3% of 65,000 which is 1495

Now we have to multiply 1,495 by 8 because it is 8 years which is 11960. Now we add 11,960 to 65,000 and our answer is

Answer : 76960

(Choice 1)