Suppose That a Landlord Is Interested in Renting Out a Two-Bedroom

question 2

Multiple Choice

Suppose that a landlord is interested in renting out a two-bedroom apartment for $1000 a month for the next year. The landlord requires rent to be paid at the beginning of the month, at which point he will deposit the rental check into a local savings account. If the annual interest that the tenant can earn on this account is 5% and interest is compounded monthly, how much will the tenant have in his savings account at the end of the year?

• A) $12,278.86
• B) $12,330.01
• C) $13,330.02
• D) $15,917.13

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Definitions:

Absolute Poverty

A condition where individuals or families are unable to meet their basic needs for survival, such as food, shelter, and healthcare.

Global Poverty

The condition of lacking necessary financial resources and basic needs on a worldwide scale, affecting billions of individuals in various countries, especially in developing regions.

Transnational Corporation

A massive enterprise that operates and manages production or delivers services in more than one country.

International Monetary Fund

An international organization created to promote global monetary cooperation, secure financial stability, facilitate international trade, and reduce poverty around the world.