If $7,500 Is to Be Paid Now, What Amount Would

question 186

Multiple Choice

If $7,500 is to be paid now, what amount would be equivalent 8 months earlier given an interest rate of 3.88% per year?

• A) $7,621.85
• B) $7,310.89
• C) $6,822.14
• D) $6,219.65
• E) $7,210.33

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Definitions:

Nerve

A bundle of fibers that transmits electrical impulses toward and away from the brain and central nervous system.

Muscle

A tissue composed of fibers capable of contracting to effect bodily movement.

Bone

A rigid organ that constitutes part of the vertebrate skeleton, composed primarily of calcium phosphate and collagen, providing support and protection.

Neuroglial Cells

Supportive cells in the nervous system that provide protection, support, and nutrition to neurons.