A Contract Requires Payments of $1,500, $2,000, and $1,000 in 100

question 89

Short Answer

A contract requires payments of $1,500, $2,000, and $1,000 in 100, 150, and 200 days, respectively, from today. What is the value of the contract today if the payments are discounted to yield a 3.5% simple interest rate of return?

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Definitions:

Oxidation Number

A number that represents the total number of electrons an atom either gains or loses in order to form a chemical bond with another atom.

Ca

Chemical symbol for Calcium, a reactive, soft metallic element that is a member of the alkaline earth metals.

Oxidation Number

A value that represents the number of electrons lost or gained by an atom in a compound compared to its elemental state.

C

Carbon, an element with the atomic symbol 'C', known for its ability to form a vast number of compounds, more than any other element.