Two Payments of $850 and $600 Must Be Made Two

question 56

Multiple Choice

Two payments of $850 and $600 must be made two years and five years from now respectively. If money can earn 4% compounded semi-annually, what single payment, three years from now, would be equivalent to the two scheduled payments?

• A) $1,477.16
• B) $1,609.22
• C) $15,783.88
• D) $1,404.19
• E) $1,438.65

---

Definitions:

Unsafe Products

Goods that pose potential risks to consumers due to manufacturing defects, design faults, or the lack of proper warnings and instructions.

Workers

Individuals who are employed to perform specific duties or labor in exchange for compensation.

Steal

The act of taking something without permission or legal right and with the intention to keep it permanently.

Employers

Individuals or organizations that hire and pay people for their work.