A Small Foundry Agrees to Pay $220,000 Two Years from Now

question 74

Multiple Choice

A small foundry agrees to pay $220,000 two years from now to a supplier for a given amount of coking coal. The foundry plans to deposit a fixed amount in a bank account every three months, starting three months from now, so that at the end of two years the account holds $220,000. If the account pays 12.5% APR compounded monthly, how much must be deposited every three months?

• A) $24,602
• B) $27,063
• C) $29,523
• D) $31,983

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Definitions:

General Attitude

An overall, enduring positive or negative feeling about some person, object, or issue.

Specific Behavior

Actions or reactions of an individual in response to external or internal stimuli.

Cognitive Coping Skills

Mental strategies that individuals use to manage stress, deal with adversity, and navigate challenges in a healthy manner.

Attitude Accessibility

The simplicity of activating an attitude from memory, affecting how quickly and forcefully attitudinal reactions occur.