You Borrow $2000 Today

question 94

Multiple Choice

You borrow $2000 today.This loan is due in 3-years with interest at j₁ = 9%.It is agreed that you will instead pay $1000 one-year from now and $X two-years from now.If money is worth j₂ = 6%,what is the value of X?

• A)$1190.12
• B)$1286.20
• C)$1380.48
• D)$1529.16

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Definitions:

Self-Correcting

The ability of an individual or system to recognize and correct its own errors or inefficiencies without external intervention.

Guidelines

Recommendations or principles that suggest a course of action or provide direction in specific situations.

Throughputs

Processes or activities that transform inputs into outputs within a system or operation.

Inputs

Resources, information, or efforts contributed towards a process or system in order to achieve output.