Whose Cash Flow Is Best Described by the Timeline Shown

question 35

Multiple Choice

Whose cash flow is best described by the timeline shown below?

• A) Joe, who puts down $3,500 to buy a car, and then makes annual payments of $1,000
• B) Harry, who borrows $3,500, and then receives an annual payment of $1,000
• C) Karen, who loans a friend $3,500, which friend then pays back the loan in four annual installments of $1,000
• D) Leo, who borrows $3,500, and then pays back the loan in four annual payments of $1,000

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Definitions:

Exam

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Shortened Eyeball

An eyeball that is shorter than normal, often associated with hyperopia or farsightedness.

Light Rays

Streams of photons, which are elementary particles of light, that travel in straight lines and are visible when they encounter an object or substance.

Magnifying Lens

An optical lens or device designed to enlarge the appearance of objects viewed through it.