Evergreen Landscaping Is Applying for a Loan

Multiple Choice

Evergreen Landscaping is applying for a loan. Your help is needed to determine how much they can borrow. They will not be able to make any payments for the first 18 months. After that, they will make payments of $750 per month for five years. There is no interest-free grace period. The first $750 payment will be made 18 months after the loan is received. If the interest rate is 10.5% compounded monthly, how much can they expect to borrow?

A) $29,829
B) $34,894
C) $36,515
D) $30,090
E) $24,008