Two Payments of $1,000 Now and $3,000 in 6 Months

question 259

Multiple Choice

Two payments of $1,000 now and $3,000 in 6 months are to be replaced by $2,500 in 4 months and another in 9 months. If the rate of interest is 6.3% annually, determine the value of the final payment in 9 months if the focal point is in 9 months.

• A) $1,532.67
• B) $1,528.875
• C) $1,502.65
• D) $1,498.13
• E) $1,486.86

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Definitions:

Variables

Elements, traits, or conditions that can change and affect the outcome of experiments or studies.

Alcohol Consumption

The act of drinking beverages containing ethanol, which can have various social, cultural, and health impacts.

Reaction Time

The amount of time taken to respond to a specific stimulus.

Coffee Consumption

The act of drinking coffee and the patterns associated with it, often studied for its effects on health and behavior.