A $3,000 Obligation Due Eight Months from Now Is Settled

question 125

Multiple Choice

A $3,000 obligation due eight months from now is settled by two equal payments, one five months from now and the other nine months from now. If money can earn interest at 16%, what is the size of each payment? Use a focal date five months from now.

• A) $3,038.46
• B) $1,723.64
• C) $861.82
• D) $1,479.77
• E) $2,959.54

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Definitions:

OOS Flags

OOS Flags, referring to "Out Of Service" flags, are indicators used in various fields, especially in transportation and equipment maintenance, to signal that a vehicle, machine, or system is not operational and should not be used until it is repaired or deemed safe.

Trailers Chassis Systems

The structural framework of trailers, including the axles, wheels, and suspension systems, that supports the load and provides stability.

Tread Depth

The measurement from the top of a tire's tread to the deepest groove, indicating how much tread remains on a tire.

OOS

Out Of Service; indicating that a device, system, or piece of equipment is not currently operational or fit for use.