A Company Owes $100,000 at the End of 1-Month and Another

question 115

Multiple Choice

A company owes $100,000 at the end of 1-month and another $200,000 at the end of 11-months.Instead,they wish to consolidate their loans and make one single payment of $X at the end of 6 months.It is agreed that the end of 5-months will be the focal date.If the interest is r = 12%,what is the value of X?

• A)$295,476.19
• B)$295,606.04
• C)$300,000.00
• D)$295,941.49

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Definitions:

Functionalist

Related to a perspective in sociology and psychology that emphasizes the importance of understanding the purpose or function of societal institutions or mental processes.

Emerging Discipline

A field of study that is in the process of establishing itself as a recognized branch of academic inquiry due to new interests or technological advances.

Industrial-Organizational Psychologist

A psychologist who applies psychological theories and principles to organizations and the workplace to improve productivity, work quality, and employee well-being.

Applied Research

Research aimed at solving practical problems rather than acquiring knowledge for knowledge's sake.