Molly Borrows Money by Promising to Make a Single Payment $\bold{\text{(Use appropriate factor(s)from the tables provided.)}}$

question 63

Multiple Choice

Molly borrows money by promising to make a single payment of $100,000 at the end of 5 years.How much money is Molly able to borrow if the interest rate is 10%,compounded semiannually? (PV of $1,FV of $1,PVA of $1,and FVA of $1) $\bold{\text{(Use appropriate factor(s) from the tables provided.) }}$

• A)$38,550
• B)$78,350
• C)$62,090
• D)$74,850
• E)$61,390

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Definitions:

Federal Government

The government system in which power is divided between a central authority and various constituent units of the country, such as states or provinces.

New Deal

A series of programs, public work projects, financial reforms, and regulations enacted by President Franklin D. Roosevelt in the United States between 1933 and 1939 in response to the Great Depression.

Agricultural Adjustment Act

A United States federal law passed in 1933 as part of the New Deal, aimed at boosting agricultural production while reducing surpluses, by offering farmers subsidies not to plant on part of their land.

Rural America

Areas of the United States located outside cities and towns, characterized by small communities and agricultural-based economies.