The Above Table Shows a 5 Year Payment Plan

question 93

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 (A +B) or the present value of the first two payments?

• A)$970.87
• B)$1,956.12
• C)$2,256.98
• D)$2,384.77

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Definitions:

Trade Promotions

Marketing activities and incentives aimed at wholesalers, retailers, or other organizational buyers to stimulate immediate sales.

Sales Tools

Instruments or resources used to assist in the sales process, including software, techniques, and methodologies.

Wholesalers

Businesses or individuals that purchase large quantities of goods from manufacturers or importers to sell in smaller quantities to retailers or other businesses.

Product Placement

A consumer sales promotion tool that uses a brand-name product in a movie, television show, video game, or a commercial for another product.