Kramer Borrowed $6,000 from George at an Interest Rate of 6

question 199

Multiple Choice

Kramer borrowed $6,000 from George at an interest rate of 6% compounded quarterly. The loan is to be repaid by three payments. A payment of $2,000 is due two years after the date of the loan. The second and third payments are to be of equal amounts and are to be paid three and five years after the date of the original loan. Calculate the size of the last two payments.

• A) $2,481.63
• B) $2.406.52
• C) $2,675.71
• D) $2,277.43
• E) $2,197.91

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Definitions:

3-Octene

A chemical compound belonging to the group of alkenes with the molecular formula C8H16, featuring a double bond between the third and fourth carbon atoms.

Line Structure

A simplified representation used in chemistry to show the arrangement of atoms in molecular structures.

Alkynes

A group of hydrocarbons that contain at least one carbon-carbon triple bond, characterized by the formula CnH2n-2.

Triple Bond

A chemical bond in which three pairs of electrons are shared between two atoms, making it stronger and shorter than single and double bonds.