Isaac Only Has $1,090 Today but Needs $1,979 to Buy

question 6

Multiple Choice

Isaac only has $1,090 today but needs $1,979 to buy a new computer.How long will he have to wait to buy the computer if he earns 5.4 percent compounded annually on his savings? Assume the price of the computer remains constant.

• A)11.83 years
• B)11.48 years
• C)12.51 years
• D)12.77 years
• E)11.34 years

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Definitions:

Purchase

The act of obtaining goods or services in exchange for money, other goods, or services.

Truck

A motor vehicle designed to transport cargo, varying in size, power, and configuration, significant in commercial transportation and logistics.

Trial Balance Totals

The aggregate sum of all debit and credit balances in a trial balance, which should equal each other, verifying the mathematical accuracy of the ledger accounts.

Cash Withdrawal

The act of taking money out of a bank account, which decreases the account balance.