Fred and Ethel Are Going to Take Out a Business

Multiple Choice

Fred and Ethel are going to take out a business loan on which they will make annual payments of $7,500 for six years. At that point in time they will also pay off the remaining balance which will be $37,155. Their interest rate is 7.6% compounded semi-annually. What is the amount that Fred and Ethel borrowed?

A) $82,155
B) $58,691
C) $54,666
D) $69,278
E) $91,821