Three Debt Payments, the First in the Amount of $1600

question 59

Multiple Choice

Three debt payments, the first in the amount of $1600.00 due today, the second in the amount of $7200.00 due in 15 months and the third in the amount of $5000 due in 24 months, are to be settled by two equal payments nine months from now and a final payment in 21 months. Determine the size of the equal payments if the money is worth 12.12% p.a. compounded monthly.

• A) $6900.00
• B) $6415.26
• C) $6801.60
• D) $12 830.51
• E) $13 800.00

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Definitions:

Congressional Oversight

The review, monitoring, and supervision of federal agencies, programs, activities, and policy implementation by the United States Congress.

Bureaucracy

An organizational structure within a government or private organization consisting of multiple levels and roles, responsible for the administration and execution of policies.

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The national legislative body of the United States, consisting of two houses: the Senate and the House of Representatives.

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A branch of government responsible for implementing and enforcing laws, typically headed by a president or prime minister.