You Have to Make a Balloon Payment on Your House

question 4

Multiple Choice

You have to make a balloon payment on your house five years from now of $15,000.If money can earn an average of 6 percent a year for the five year period,what factor will you use to determine what to deposit now?

• A)0)7462
• B)0)7473
• C)1)3382
• D)1)3401

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Definitions:

Petty Cash Fund

A small amount of cash kept on hand, used for paying minor expenses to avoid the complexity of writing cheques.

Cash Short

A situation where the amount of cash on hand is less than the recorded amount, often indicating errors or theft.

Office Supplies

Consumable items that are used in offices on a day-to-day basis for administrative and office-related tasks, such as paper, pens, and staples.

Petty Cash Fund

A small amount of cash kept on hand for minor, immediate expenses to avoid the complexities of writing checks.