Two Debt Payments of $2,000 Each Are Due Now and Nine

question 279

Multiple Choice

Two debt payments of $2,000 each are due now and nine months from now. If money is worth 8%, what single payment six months from now is required to settle the debt?

• A) $4,042.34
• B) $7,177.27
• C) $6,127.48
• D) $3,600.00
• E) $4,040.78

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Definitions:

Longevity

The duration or length of an individual's life or existence, often studied in the context of seeking to extend the healthy lifespan.

Functional Age

The actual competence and performance levels of an individual, as opposed to their chronological age.

Wear-And-Tear

The damage or deterioration that occurs as a result of ordinary use over time.

Programmed Aging

The theory that aging is a biological process controlled by specific genes.