Adele Has Never Driven a Car with a Manual Transmission

question 168

Multiple Choice

Adele has never driven a car with a manual transmission before-that is, she's never had to decide when to shift gears, push in the clutch, or stop suddenly when the car is in gear.She's just bought a car with manual transmission, and wants to practice driving it before she takes it onto the highway.What should she do?

• A) Take her best friend along to provide instructions and support.
• B) Drive the car alone until she gets the hang of it.
• C) Have a group of friends follow along behind her to help pull her out of a ditch if something goes wrong.
• D) Drive on the busiest road in the city.

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Definitions:

Annuity

A financial instrument that provides a consistent series of payments to a person, mainly utilized as a source of income for those in retirement.

Required Return

The minimum return an investor expects to achieve by investing in a particular asset, factoring in the risk associated with the investment.

Interest Rate

The proportion, in percentage, charged by a lender to a borrower for the use of assets, usually expressed on an annual basis.

Annual Interest

The amount of interest paid or earned over a one-year period, typically expressed as a percentage of the principal.