What Single Payment One Year from Now Will Satisfy Two

question 38

Multiple Choice

What single payment one year from now will satisfy two obligations: $4,000 due today and $6,000 due 18 months from now? Assume that money can earn 14%.

• A) $5,083.74
• B) $5,000.00
• C) $10,980.00
• D) $10,167.48
• E) $5,490.00

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Definitions:

Incremental

Pertaining to gradual or step-by-step progression or increase, often used in the context of developments or changes.

Active Verbal

refers to the use of spoken words in a dynamic and engaging manner to communicate.

Invulnerable

means not susceptible to harm, damage, or being hurt, emotionally or physically.

Acquiescent

Displaying agreement or compliance without protest or enthusiasm.