Sam Has a Financial Obligation That Requires Him to Pay

question 86

Multiple Choice

Sam has a financial obligation that requires him to pay $1,700 in one year; $1,300 in 2 ½ years and a final payment of $2,000 in 3 years. If Sam wishes to pay off all his obligations in 18 months, given an interest rate of 6.7% compounded quarterly. Using the financial functions on the calculator, determine the lump sum payment needed to fulfill his obligations in 18 months.

• A) $4,784.14
• B) $4,884.26
• C) $4,916.54
• D) $5,219.23
• E) $5,424.86

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Definitions:

Age 10

A stage in childhood development where individuals often exhibit increased cognitive abilities, social skills, and physical growth.

Primary Caregiver

The main person who provides direct care, support, and nurturing to a child or dependent individual.

Overcompensate

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Retain

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