A Debt of $5000 Is to Be Paid Off by Installments

question 57

Multiple Choice

A debt of $5000 is to be paid off by installments of $2000 30-days from now,$2500 60-days from now,and a final payment of $613.68 d-days from now.If simple interest is charged at r = 12% and the declining balance method is used,what is the value of d?

• A)245
• B)240
• C)180
• D)111

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Definitions:

CPI

A metric known as the Consumer Price Index evaluates the overall weighted pricing of a range of consumer items and services, covering areas such as healthcare, food, and transportation.

Raise

An increase in salary or wages.

Weakens

To become lesser in strength, value, or severity.

US$

The United States dollar, the official currency of the United States of America.