If you borrow 10,000 dollars over five years, at the end of five years, what will you have paid?

Question

A. $10,000
B. $2,000
C. more than $10,000
D. less than $2,000

Answer 1

The answer depends on the interest rate and the terms of the loan. If you borrow $10,000 and there is an interest charge, you will pay back more than $10,000 over the five years. Therefore, the correct answer is:

C. more than $10,000

If there were no interest charges at all, you would pay back just $10,000, but typically loans come with interest, so it's reasonable to assume you'll pay more than that amount.