Two Payments of $49 000 Each Must Be Made 3

question 153

Multiple Choice

Two payments of $49 000 each must be made 3 year and 5 year from now. If money can earn 4.9% compounded monthly, what single payment 3 years from now would be equivalent to the two scheduled payments?

• A) $93 435
• B) $98 000
• C) $88 869
• D) $105 742
• E) $101 177

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Definitions:

Maintenance

The process of preserving or keeping equipment, systems, or facilities in effective operating condition through routine checks and repairs.

Range Cylinder

Refers to a component in hydraulic or pneumatic systems that determines the range of movement or force exerted by the system, often by specifying the maximum extendable length of the cylinder.

Yoke Bar

A component in mechanical systems used to connect two moving parts, such as in the suspension or driveshaft of a vehicle.

Fork

A tool or machine part with two or more prongs, used for lifting, carrying, or positioning objects.