Your company just sold a product with the following payment plan: $50,000 today, $25,000 next year, and $10,000 the following year. if your firm places the payments into an account earning 10% per year, how much money will be in the account after collecting the last payment?
a) $99,000
b) $98,000
c) $88,500
d) $85,000

b) $98,000

Explanation:

Here we need to find out the Future value of collecting the last payments .

Already we know the formula for Future value .

FV = Co*( 1 + r)^n

For today:

Future value ( FV ) = 50,000* ( 1 + 0.10)^{2}

                               = 50,000* ( 1.1)^{2}

                              = $60500  

Future value ( FV ) = $60500  

For next year:

Future value ( FV ) = 25,000* ( 1.1)^{1}

                               = 25,000 * 1.1

                               = $27500  

Future value ( FV ) = $27500    

For the following year:

Future value ( FV ) = 10,000*( 1.1)^{0}

                               = 10,000 * 1

                               = $10,000

Future value ( FV ) = $10,000

money in the account after the last payment

= today + next year + following year  

= $60500    + $27500     + $10,000

= $98,000

Therefore, The money that will be in the account after collecting the last payment is $98,000.

being born in poverty would limit the people's chances, opportunities and benefits.

this happen because of several things, such as:

- poor people tend to gain less access to good education and nutrition. this mean that their chance to obtain high paying jobs would also be limited.

- poor people tend to socialize with other poor people while the rich tend to socialize with other rich people. this means that simply throguh their social circle, rich people would have more business opportunities compared to the poor people.

- rich people tend to have more capital in their disposal. this would benefit them in business since it is far easier for them to fund their business operation compared to poor people.