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

question 64

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
• E)$28,077

---

Definitions:

Autocratic Leadership

A leadership style characterized by individual control over all decisions with minimal input from group members.

Commitment

The state or quality of being dedicated to a cause, activity, or relationship.

Disruptive Behavior

Actions or behaviors that interrupt or hinder processes, activities, or the functioning of a group or environment in a negative manner.

Receiver Decodes

The process by which a person interprets and tries to make sense of the message they have received.