A Small Foundry Agrees to Pay $250 000 Two Years

question 65

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

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Definitions:

CITES

An international accord, the Convention on International Trade in Endangered Species of Wild Fauna and Flora, focuses on protecting wildlife species from extinction by regulating their trade across borders.

Illegal Wildlife Trade

The unlawful buying and selling of wildlife products or live animals, contributing to the endangerment and extinction of species globally.

Member Countries

Nations that are part of an international organization or agreement.

Tropical Forests

Tropical Forests are dense forests located in the equatorial zone, characterized by high biodiversity, a warm climate, and significant annual rainfall.