A Tenant Wants to Lease a Building for $48,000 Per

question 54

Multiple Choice

A tenant wants to lease a building for $48,000 per year. She signs a five-year rental agreement that
states that she will pay $24,000 every six months for the next five years. Which of the following is
the timeline for her rental payments, assuming she makes the first payment immediately?

• A) \[\begin{array} { | l | l | l | l | l | l | l | l | l | l | l | l | }
• \hline \begin{array} { l }
• \text { Date } \\
• \text { (years) }
• \end{array} & 0 & 1 / 2 & 1 & 11 / 2 & 2 & 21 / 2 & 3 & 31 / 2 & 4 & 41 / 2 & 5 \\
• \hline \begin{array} { l }
• \text { Cash Flows } \\
• \text { (thousands) }
• \end{array} & - \$ 24 & - \$ 24 & - \$ 24 & - \$ 24 & - \$ 24 & - \$ 24 & - \$ 24 & - \$ 24 & - \$ 24 & - \$ 24 & 0 \\
• \hline
• \end{array}\]
• B) \[\begin{array} { | l | l | l | l | l | l | l | }
• \hline \begin{array} { l }
• \text { Date } \\
• \text { (years) }
• \end{array} & 0 & 1 & 2 & 3 & 4 & 5 \\
• \hline \begin{array} { l }
• \text { Cash Flows } \\
• \text { (thousands) }
• \end{array} & - \$ 48 & - \$ 48 & - \$ 48 & - \$ 48 & - \$ 48 & - \$ 48 \\
• \hline
• \end{array}\]
• C) \[\begin{array} { | l | l | l | l | l | l | l | }
• \hline \begin{array} { l }
• \text { Date } \\
• \text { (years) }
• \end{array} & 0 & 1 & 2 & 3 & 4 & 5 \\
• \hline \begin{array} { l }
• \text { Cash Flows } \\
• \text { (thousands) }
• \end{array} & \$ 48 & \$ 48 & \$ 48 & \$ 48 & \$ 48 & \$ 48 \\
• \hline
• \end{array}\]
• D) \[\begin{array} { | l | l | l | l | l | l | l | l | l | l | l | l | }
• \hline \begin{array} { l }
• \text { Date } \\
• \text { (years) }
• \end{array} & 0 & 1 & 2 & 3 & 4 & 5 & 6 & 31 / 2 & 4 & 41 / 2 & 5 \\
• \hline \begin{array} { l }
• \text { Cash Flows } \\
• \text { (thousands) }
• \end{array} & \$ 24 & \$ 24 & \$ 24 & \$ 24 & \$ 24 & \$ 24 & \$ 24 & \$ 24 & \$ 24 & \$ 24 & \$ 24 \\
• \hline
• \end{array}\]

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Definitions:

General Point

A broad or overarching statement or principle that applies to a variety of specific instances or situations.

Ethnomethodologists

Researchers who study how people's everyday interactions and practices create and sustain the social order.

Micro Structures

Relates to the patterns of interactions and relationships between individuals or small groups within the larger framework of society.

Macrostructures

Large-scale social structures that influence the organization and behavior of societies.