An Investor Owns Several Apartment Buildings

question 100

Multiple Choice

An investor owns several apartment buildings. The taxes on these buildings total $2,000 per year and are due before April 1. The late fee is 0.5% per month up to 6 months, at which time the buildings are seized by the authorities and sold for back taxes. If the investor has $2,000 available on March 31, how much money will he save by investing the money at 9% and paying the taxes and the penalty on September 30 instead of paying the taxes at that time? Round your answer to the nearest cent. ​

• A)$120.00
• B)$84.00
• C)$30.00
• D)$75.00
• E)$48.00

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Definitions:

Stagnation

A period or state of inactivity or lack of growth in personal, economic, or societal aspects.

Ego Integrity

A sense of completeness and cohesion of the self, often achieved in later adulthood, as described by Erikson's stages of psychosocial development.

Despair

A profound sense of hopelessness and dejection, often occurring in the final stage of Erik Erikson's psychological development theory.

Reproductive Glands

Organs in the body responsible for producing gametes (sperm or eggs) and hormones involved in reproduction.