Milton took out a loan for s2400 at 7% interest compounded annually the makes yearly payments of $140, will he ever pay off the loan?

a. yes, because $140 is less than the amount of interest he is
charged per year.)
b. no, because $140 is greater than the amount of interest he is
charged per year.
c. yes, because $140 is greater than the amount of interest he is
charged per year.
d. no, because $ 140 is less than the amount of interest he is
charged per year.

We will choose option D.

Step-by-step explanation:

Milton took out a loan for $2400 at 7% interest compounded annually.

So, after one year his loan will grow up to dollars.

Therefore, the interest added to the principal is $(2568 - 2400) = $168

But Milton makes yearly payment of $140 which is less than the interest i.e. $168 which is added to his loan in the first year.

Therefore, he can not ever pay off the loan.  

So, we will choose option D. (Answer)

answer: this is not a question

step-by-step explanation: this is a answer

step-by-step explanation:

(3rd option) - c