The Above Table Shows a 5 Year Payment Plan

question 6

Multiple Choice

The above table shows a 5 year payment plan. Each payment is made at the end of the year, so after one year, a payment of $ made, after two years another payment of $1,500 is made and so on. The interest rate is 3 percent.
-Refer to the table above. What is the value of A plus B plus C plus D (A + B + C +D) or the present value of the first four payments?

• A)$6,200.50
• B)$6,436.27
• C)$6,225.32
• D)$6,589.23

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Definitions:

Insider Trading

The illegal practice of trading on the stock exchange to one's own advantage through having access to confidential information.

Private Information

Data or knowledge that is not publicly available and is often confidential or proprietary in nature.

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The process of modifying the visible features of an area of land, including living elements, such as flora and fauna; and abstract elements like weather conditions.

Social Capital Dimension

Refers to the value found in relationships and networks that individuals or organizations possess which can be leveraged for financial, personal, or social gains.