Marcus is planning to propose to his girlfriend Melody next…
Marcus is planning to propose to his girlfriend Melody next week. Since he is a poor college student, Marcus decides that he needs to get a loan so that he can get Melody the ring of her dreams. The engagement ring he chooses costs $3,500 and is financed with a 3 year, 4% (compounded monthly) interest rate. If Marcus takes all 3 years to pay the ring off, how much will he have really ended up spending on Melody’s ring?