What Periodic Payment Does Imran Receive from a $100 000

question 109

Multiple Choice

What periodic payment does Imran receive from a $100 000, 3-year, monthly payment GIC earning a nominal rate of 2.25% payable monthly?

• A) $180.50
• B) $187.50
• C) $191.75
• D) $185.50
• E) $208.33

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Definitions:

Consideration

Something of value promised to another when making a contract, which is required for the contract to be legally binding.

Contract Law

The body of law that regulates the making, enforcement, and interpretation of agreements between parties.

Consideration

Something of value, such as money, goods, or a promise, exchanged between parties in a contract.

Contract Price

The total financial compensation that is agreed upon by all parties involved in a contract for the sale of goods or services.