Matt Kaminsky Bought a Volvo That Is 3 3/4 Times

question 46

Multiple Choice

Matt Kaminsky bought a Volvo that is 3 3/4 times as expensive as the car his parents bought. If his parents paid $8,000 for theirs, what is the cost of Matt's car?

• A) $26,000
• B) $28,000
• C) $29,000
• D) $30,000
• E) None of these

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Definitions:

Number of Periods

In finance, it refers to the total duration, measured in time units (such as years or months), over which payments or calculations are spread.

Compounded Semiannually

Refers to the process where interest is added to the principal balance of an investment, loan, or deposit twice a year, resulting in interest being earned on interest.

Future Value

The worth of a current asset or amount of money at a specified time in the future, accounting for specific interest or growth rates.

Future Value Table

A mathematical table used to calculate the future value of an investment or loan based on a specific interest rate and time period.