Consider the Following Situation

question 23

Multiple Choice

Consider the following situation. A political party holds a national convention with 1,100 delegates. At the convention, five persons (which we will call A, B, C, D, and E) have been nominated as the party's presidential candidate. After the speeches and hoopla, the delegates are asked to rank all five candidates according to his or her choice. However, before the vote, caucuses have narrowed the choices down to six different possibilities. The results of the first ballot are shown (choices, followed by the number of votes) : ​ Who would win in a runoff election using the principle of eliminating the candidate with the fewest first-place votes?
​

• A) B
• B) C
• C) A
• D) E
• E) D

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Definitions:

Interest Paid

The amount of money paid over a period for the use of borrowed funds.

Partial Amortization Schedule

A table detailing periodic loan payments that are not sufficient to fully amortize the loan over its term, leading to a remaining lump sum payment or balloon payment at the end.

Straight-Line Amortization

Straight-line amortization is a method of evenly spreading out the cost of an intangible asset over its useful life.

Bond Carrying Value

The net value of a bond on a company's balance sheet, equivalent to the bond's face value adjusted for any premiums paid or discounts received.