What Is the Size of the Payments That Must Be

question 33

Multiple Choice

What is the size of the payments that must be deposited at the beginning of each 6-month period in an account that pays an annual rate of 8%, compounded semiannually, so that the account will have a future value of $110,000 at the end of 11 years? Round your answer to the nearest cent. ​

• A)$17,573.48
• B)$7,842.69
• C)$916.44
• D)$3,088.34
• E)$1,597.49

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Definitions:

Making Payments

The process of transferring funds from one party to another in exchange for goods, services, or to fulfill a legal obligation.

Multiple-Channel Distribution

The process of using more than one channel to sell and distribute products to consumers, such as online, retail outlets, and direct sales.

Distribution Channels

The pathways through which a product or service is delivered from the producer to the end consumer.