Which of the Following Scenarios Will Amount to the Making

question 4

Multiple Choice

Which of the following scenarios will amount to the making of an offer?

• A)Jasper telephones Rupert and asks whether he would sell his barbecue for $500.
• B)Mimi emails Rose and inquires whether she has any Dalmatian puppies for sale.
• C)James places a sign on his fruit stall stating that he will sell his remaining watermelons to the first 10 customers for $1 each.
• D)Aubrey places an advertisement in the local newspaper for sale of his skateboard for $50 or the nearest offer.

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Definitions:

Original Principal

The initial amount of debt or loan before any interest or fees are added; it is the base amount on which interest calculations are made.

Accrued Interest

Interest earned or owed that has not yet been paid or received.

Discounting

The process of determining the present value of a future amount of money or stream of cash flows given a specific rate.

Present Dollar

Present Dollar refers to the value of a sum of money in terms of its purchasing power at the current period, not adjusted for inflation or deflation over time.