What Periodic Payment Does Imran Receive from a $100 000

question 109

Multiple Choice

What periodic payment does Imran receive from a $100 000, 3-year, monthly payment GIC earning a nominal rate of 2.25% payable monthly?

• A) $180.50
• B) $187.50
• C) $191.75
• D) $185.50
• E) $208.33

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Definitions:

Fixed Expenses

Costs that do not change in total with variations in the volume of activity, such as rent, salaries, and insurance.

Selling Price

The price at which a product or service is offered to consumers.

Net Operating Income

The revenue from a company's primary business operations minus operating expenses, excluding taxes and interest.

Units Sold

The quantity of product units that have been sold during a specific period.