Albert Borrows Money from Jacob Today with a Promise to Repay

question 68

Multiple Choice

Albert borrows money from Jacob today with a promise to repay $7,418.87 in four years. If Jacob could earn 5.45 percent annually on the any investment he makes today, how much would he be willing to lend Albert today? (Round to nearest dollar.)

• A) $6,000
• B) $7,035
• C) $6,500
• D) $7,150

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Definitions:

Somatic Nervous System

Part of the peripheral nervous system that oversees voluntary movements of the body by transmitting sensory and motor signals to and from the central nervous system.

Parasympathetic Nervous

Part of the autonomic nervous system responsible for relaxation, regeneration, and feeding activities, often termed as the "rest and digest" system.

Sympathetic Nervous

Part of the autonomic nervous system that prepares the body for fight or flight responses by accelerating heart rate, dilating pupils, and other physiological changes.

Somatic Nervous

A component of the peripheral nervous system associated with the voluntary control of body movements via skeletal muscles.