A Contract Valued at $47 500

question 46

Essay

A contract valued at $47 500.00 requires payments of $6951.00 every six months. The first payment is due in four years and interest is 6.6% compounded semi-annually.
a) How many payments are required?
b) What is the size of the last payment?
c) How much will be paid in total?
d) How much of what is paid is interest?

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Definitions:

UN Global Compact

A voluntary initiative based on CEO commitments to implement universal sustainability principles and to take steps to support UN goals.

Regulatory Agency

A governmental body responsible for enforcing laws and regulations to protect public health, safety, environment, and to ensure fair market competition.

Utilitarianism

An ethical theory that states that the best action is the one that maximizes utility, usually defined as that which produces the greatest well-being of the greatest number of people.

Greenpeace

An international environmental organization that promotes earth-friendly policies and actions.