Each Year a Company Is Required to Place Money into a Bank

question 4

Multiple Choice

Each year a company is required to place money into a bank account to retire its bond's principal at maturity. If the bond's principal is $10 million, and bank interest is estimated at 8%, how much are the annual payments if they are to be made over the last 20 years of the bond's life?

• A)$101,853
• B)$218,522
• C)$462,950
• D)$425,387

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Definitions:

Responsibilities

Duties or obligations that an individual, group, or organization is expected or required to undertake.

High-performance Work Systems

Organizational approaches designed to enhance employee effectiveness by integrating various human resource practices, including training, development, and motivation.

Human Resource Practices

The strategies, policies, and procedures implemented by an organization to manage its employees effectively.

Organizational Productivity

The measure of how efficiently and effectively an organization uses its resources to achieve its goals, often reflected in its output or achievements.