A Debt of $5000 Is Due Today and Another Debt

question 99

Multiple Choice

A debt of $5000 is due today and another debt of $4000 is due in 70 days.These debts are to be settled/replaced by a payment of $6000 in 20-days and a payment of $X in 110-days (from today) .If r = 11%,what is the value of X using the end of 20 days as the focal date?

• A)$2892.31
• B)$3008.81
• C)$3001.67
• D)$3051.34

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Definitions:

Routes

Paths or courses determined for the transportation of goods or people from one location to another.

Distribution Network

The interconnected group of storage facilities and transportation systems that a company uses to get products from the manufacturer to the end consumer.

Raw Material

Basic materials that are processed or transformed into components or products in manufacturing and production processes.

Manufacturing Plants

Facilities where goods are produced in large quantities through combining and processing raw materials using various machines and labor.