A Contract Stipulated a Payment of $8,500 Plus 6

question 68

Multiple Choice

A contract stipulated a payment of $8,500 plus 6.4% interest compounded monthly in 30 months. Prior to the due date, the contract was sold for $9,700 based on 3.8% interest compounded quarterly. How many months before maturity did the contract change hands?

• A) 9 months and 22 days
• B) 8 months and 22 days
• C) 7 months and 22 days
• D) 6 months and 22 days
• E) 5 months and 22 days

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Definitions:

Arteries

Blood vessels that carry oxygen-rich blood away from the heart to the body.

Left Ventricle

The chamber of the heart that receives oxygenated blood from the left atrium and pumps it out under high pressure through the aorta to the systemic circulation.

Aorta

Large artery that receives oxygenated blood pumped out of the heart’s left ventricle.

Pulmonary Circuit

The pathway of blood flow between the heart and lungs where carbon dioxide is exchanged for oxygen.