Question 25(1 point)

On the day you start university, you borrow $20,500 from your local bank. The terms include an interest rate of 5.75% compounded semi-annually and stipulate that the loan be repaid in equal annual installments over 5 years, with the first payment made one year from the date of borrowing. If you repay the loan as scheduled, how much total interest will you pay on this loan over its life?

Question 25 options:

$3,350

$3,443

$3,536

$3,629

$3,722