A Small Foundry Agrees to Pay $250,000 Two Years from Now

question 98

Multiple Choice

A small foundry agrees to pay $250,000 two years from now to a supplier for a given amount of coking coal.The foundry plans to deposit a fixed amount in a bank account every three months,starting three months from now,so that at the end of two years the account holds $250,000.If the account pays 5.5% APR compounded monthly,how much must be deposited every three months?

• A)$29,770
• B)$29,777
• C)$29,740
• D)$31,250

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Definitions:

Stereotypes

Overgeneralized beliefs about a particular category of people, simplifying complex human behaviors to basic assumptions.

Halo Effects

A cognitive bias where the perception of one trait, often positive, influences the perception of other traits without objective evidence.

Selective Perception

How individuals filter and interpret media messages, focusing on what aligns with their desires and overlooking conflicting views.

Perceptual Distortion

A cognitive error caused by biases, prejudices, or external factors, affecting how one perceives reality.