You're Trying to Save to Buy a New Car Valued

question 33

Multiple Choice

You're trying to save to buy a new car valued at $42,650.You have $40,000 today that can be invested at your bank.The bank pays 4.2 percent annual interest on its accounts.How long will it be before you have enough to buy the car for cash? Assume the price of the car remains constant.

• A)1.17 years
• B)2.12 years
• C)1.06 years
• D)1.61 years
• E)1.56 years

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Definitions:

Government Property

Assets owned by the state or government, including buildings, land, and resources.

Economic Assistance

Financial aid provided by governments or international institutions to support the economies of other nations, communities, or individuals in need.

Progressive Tax

A tax for which high-income taxpayers pay a larger fraction of their income than do low-income taxpayers.

Libertarians

Individuals who advocate for minimal government intervention in personal lives and the economy, emphasizing individual liberty and free markets.