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Rob Bought a Yacht on a Contract Requiring Monthly Payments

Question 175

Multiple Choice

Rob bought a yacht on a contract requiring monthly payments of $2500 for 5 years beginning on the 6th month after the date of purchase. What was the cash value of the yacht, if interest is 6.9% compounded monthly?


A) $126 556
B) $122 980
C) $122 277
D) $135 267
E) $136 979

Correct Answer:

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