A $4,000 Payment Has to Be Made 3 Years from Now

question 247

Multiple Choice

A $4,000 payment has to be made 3 years from now and another $6,000 payment 5 years from now. Using the financial functions on the calculator, determine what lump sum payment 40 months from now will be equivalent to these two payments if interest is 5.2% compounded quarterly.

• A) $11,654.38
• B) $11,253.35
• C) $9,574.45
• D) $9,224.69
• E) $8,62.74

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Definitions:

Ethics

Principles that define what is morally right and wrong, governing individuals' behaviors and decisions.

Indirect Strategy

A communication approach where key messages are delivered in a roundabout or less direct manner.

Manipulative

Actions or strategies designed to influence or control others' behaviors or perceptions in a subtle or deceptive way.

Communicating Negative News

The process of delivering unfavorable or disappointing information in a sensitive and effective manner.