Two Payments of $5,000 60 Days Ago and $5,000 in 120

question 107

Multiple Choice

Two payments of $5,000 60 days ago and $5,000 in 120 days are to be replaced by a payment now and $4,000 in 90 days. If interest is 3.2% annually, determine the amount to pay now, if the focal point is today.

• A) $6,012.40
• B) $6,018.50
• C) $6,005.57
• D) $6,003.20
• E) $5,996.60

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Definitions:

Electron Transport Chain

A sequence of electron carrier molecules that transfer electrons and release energy used to make ATP, found in the inner mitochondrial membrane.

Citric Acid Cycle

A series of chemical reactions used by all aerobic organisms to generate energy through the oxidation of acetate derived from carbohydrates, fats, and proteins into carbon dioxide.

Glycolysis

The metabolic pathway that converts glucose into pyruvate, generating energy in the form of ATP.

Anaerobic Respiration

A form of respiration that occurs in the absence of oxygen, where energy is produced by the breakdown of glucose through processes such as fermentation.