A $4,000 Payment Has to Be Made 3 Years from Now

question 218

Multiple Choice

A $4,000 payment has to be made 3 years from now and another $6,000 payment 5 years from now. Using the financial functions on the calculator, determine what lump sum payment 40 months from now will be equivalent to these two payments if interest is 5.2% compounded quarterly.

• A) $11,654.38
• B) $11,253.35
• C) $11,053.35
• D) $12,454.35
• E) $12,675.35

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Definitions:

Power

The ability to get others to do something you want done or to make things happen the way you want.

Affiliation

is a social or professional connection between individuals or organizations, often based on shared goals, interests, or values.

Life Experiences

The collection of events, situations, and activities that an individual encounters throughout their lifetime which shape their character and beliefs.

Herzberg's Two-Factor Theory

A theory that distinguishes between motivators (factors that cause satisfaction and motivation) and hygiene factors (factors that prevent dissatisfaction but do not necessarily motivate).