PV of Multiple Cash Flows: Jack Stuart Has Loaned Money

question 48

Multiple Choice

PV of multiple cash flows: Jack Stuart has loaned money to his brother at an interest rate of 5.75 per cent. He expects to receive $625, $650, $700, and $800 at the end of the next four years as complete repayment of the loan with interest. How much did he loan out to his brother? (Round to the nearest dollar.)

• A) $2,713
• B) $2,250
• C) $2,404
• D) $2,545

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Definitions:

Basal Ganglia

A group of structures located deep within the brain, involved in coordinating movement and to some degree, behavior and emotions.

Hippocampus

A region of the middle part of the temporal lobe involved with memory formation.

Temporal Lobes

Regions of the brain located beneath the temples, crucial for processing auditory information and involved in managing memory and emotions.

Occipital Lobes

The region of the brain located at the back of the head, responsible for receiving and processing visual information.