Two Payments of $49 000 Each Must Be Made 3

question 169

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 5 years from now would be equivalent to the two scheduled payments?

• A) $98 117
• B) $98 000
• C) $103 034
• D) $105 742
• E) $101 177