Solve the Problem

question 83

Multiple Choice

Solve the problem. Round to the nearest cent as needed.
-Cara knows that she will need to buy a new car in 3 years. The car will cost $15,000 by then. How much should she invest now at 12%, compounded quarterly, so that she will have enough to buy a new car?

• A) $10,520.70
• B) $12.594.29
• C) $11,957.91
• D) $9532.77

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Definitions:

Lower Of Cost

An accounting principle where inventory is recorded at the lower of either its original cost or its current market value.

Market Value

The current price at which an asset or service can be bought or sold in an open market.

Microwave Ovens

Kitchen appliances that use microwave radiation to cook or heat food efficiently and quickly.

FIFO Method

An inventory valuation method where the first items purchased are the first ones to be sold, standing for "First In, First Out."