The Above Table Shows a 5 Year Payment Plan

question 38

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 sum of money should be deposited today in an account that earns 3 percent interest to make each of the five payments above and, when the last payment is made, there will be no money left in the account?

• A)$9,912.56
• B)$11,000.00
• C)$9,886.70
• D)$9,723.45

Understanding of how the Interest Act impacts contracts with payable interest.

Recognize the scope of consumer protection legislation across different industries.

Comprehend the legal protections offered through various consumer protection acts, including the Trade Practices Act and related legislation.

Understanding the concept and implications of an unpaid seller's lien.

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Education

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