A Small Business Owner Visits His Bank to Ask for a Loan

Multiple Choice

A small business owner visits his bank to ask for a loan. The owner states that she can repay a loan at $2,500 per month for the next two years and then $3,000 per month for another two years after that. If the bank is charging customers 6.5 percent APR, how much would it be willing to lend the business owner?

A) $111,712.39
B) $114,009.21
C) $115,278.17
D) $117,809.63