A Debt of $3000 Is Due in 4 Months and Another

question 86

Multiple Choice

A debt of $3000 is due in 4 months and another $5000 is due in 9 months.Instead,it is agreed that a payment of $X,made in 3 months,followed by a payment of $4000 in 10 months,will fully pay off the loan.Using 9 months as the focal date,what is X if the simple interest rate on the loan is r = 10%?

• A)$4365.96
• B)$3960.06
• C)$3896.83
• D)$3841.01

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Definitions:

Managed Care System

A healthcare delivery system aimed at managing costs, utilization, and quality of healthcare services.

Primary Care Physicians

Medical doctors who provide first contact for a person with an undiagnosed health concern as well as continuing care for varied medical conditions, not limited by cause, organ system, or diagnosis.

Drug Treatment

The use of medications or other substances to manage or cure diseases and disorders.

Deinstitutionalization

Movement in which thousands of mental patients were released from mental institutions; a result of the patients’ rights movement, which was aimed at stopping the dehumanization of mental patients and at restoring their basic legal rights.