Your Grandmother Has Promised to Give You $100 Every Three

question 90

Multiple Choice

Your grandmother has promised to give you $100 every three months for four years,with the first payment occurring three months from today.How much is this gift worth to you today at a discount rate of 3.8 percent,compounded quarterly?

• A)$1,129.07
• B)$1,633.25
• C)$1,660.80
• D)$1,477.84
• E)$1,479.32

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Definitions:

Fixed Costs

Fixed costs are business expenses that remain constant regardless of the level of production or sales activities, such as rent, salaries, and insurance.

Selling Price

is the amount of money for which a product or service is sold to customers.

Breakeven Analysis

It's a financial calculation to determine when a project or business will be able to cover all its costs and begin to make a profit.

Cost Control Measures

Strategies or actions taken by a company to maintain or reduce costs in order to improve profitability.