A Contract Guarantees Payment of $500 a Month for the Next

question 177

Multiple Choice

A contract guarantees payment of $500 a month for the next 18 months starting today . How much is that contract worth today if the interest rate is 12% compounded monthly?

• A)$8281.14
• B)$8199.15
• C)$9905.58
• D)$9087.50

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Definitions:

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A device constructed to perform specific tasks, often powered by electricity or mechanical force, ranging from simple tools like levers to complex computers.