Find the Periodic Payment R Required to Accumulate a Sum

question 175

Multiple Choice

Find the periodic payment R required to accumulate a sum of S dollars over t years with interest earned at the rate of r %/year compounded m times a year. Please round the answer to the nearest cent. ​
S = 310,000, r = 5.5, t = 11, m = 12
​

• A) R = $1,519.07
• B) R = $1,676.02
• C) R = $1,714.64
• D) R = $1,714.49
• E) R = $1,717.17

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Definitions:

Absorption Costs

The total of all direct and indirect manufacturing costs assigned to a product.

Suboptimal Decisions

Decisions that do not yield the best possible outcome or that are less efficient compared to the optimal choice.

Buying Division

A segment within a company responsible for purchasing goods, materials, and services from external suppliers.

Transfer Prices

Prices used for the sale of goods or services between departments or subsidiaries within the same company, often set to comply with tax laws.