If $7,500 Is to Be Paid Now, What Amount Would

question 186

Multiple Choice

If $7,500 is to be paid now, what amount would be equivalent 8 months earlier given an interest rate of 3.88% per year?

• A) $7,621.85
• B) $7,310.89
• C) $6,822.14
• D) $6,219.65
• E) $7,210.33

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Definitions:

Target Profit

The target net earnings a corporation plans to reach within a certain timeframe as an integral aspect of its financial and business objectives.

Unit Sales

The quantity of products sold, measured in units, without considering the revenue generated from those sales.

Target Profit

The predetermined amount of profit a company aims to achieve within a certain period.

Dollar Sales

The total revenue or sales value of a product, service, or business transaction expressed in terms of dollars.