David Is Supposed to Pay $975 to Mark, but Wishes

question 203

Multiple Choice

David is supposed to pay $975 to Mark, but wishes to delay it for 6 months. Determine the amount Mark should expect in 6 months if the rate of interest is 4.75%

• A) $992.68
• B) $998.16
• C) $1,002.45
• D) $1,007.67
• E) $1,012.37

---

Definitions:

Convertible Bond

A type of bond that can be converted into a predetermined number of shares of the issuing company's stock.

Subscription Agreements

Legal agreements for the purchase of shares in a company, typically used in private placements, detailing the terms and conditions of the investment.

Incorporation Process

The legal procedure by which a business entity is formed as a corporation, involving registration with the state, drafting articles of incorporation, and meeting other regulatory requirements.

Capital

Financial assets or the financial value of assets, such as cash or goods, used by a company to fund its operations and facilitate its growth.