$8,000 Due Now Is to Be Replaced by Three Equal

question 134

Multiple Choice

$8,000 due now is to be replaced by three equal payments in 2, 6 and 9 months from today. If interest is 6.75% annually, determine the value of the payments.

• A) $2,145.62
• B) $2,381.06
• C) $2,573.25
• D) $2.648.67
• E) $2,750.99

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Definitions:

Specific Performance

A legal remedy requiring a party to perform their contractual obligations when monetary damages are inadequate.

Course Grades

The evaluations or marks assigned to students based on their performance in a course.

Business Law

The enforceable rules of conduct that govern the actions of buyers and sellers in market exchanges.

Commercial Impracticability

A doctrine in contract law that allows parties to be excused from performance when an unforeseen event makes fulfillment of the contract unreasonably difficult or expensive.