Parents Agree to Invest $500 (At an Annual Rate of 8

question 87

Multiple Choice

Parents agree to invest $500 (at an annual rate of 8%, compounded semiannually) for their son on the December 31 or June 30 following each semester that he makes the Dean's List during his 4 years in college. If he makes the Dean's List in each of the 8 semesters, how much money will his parents have to give him when he graduates? Round your answer to the nearest cent.

• A)$2,123.23
• B)$6,003.05
• C)$4,607.11
• D)$1,560.80
• E)$3,316.49

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Definitions:

Implied Warranty

A legal assumption that a product is fit for its intended purpose, even if not expressly stated by the seller.

Merchantability

A guarantee that a product will meet reasonable quality and performance standards for sale to customers.

Merchantable

A legal term referring to goods that meet basic quality standards and are fit for the purpose for which goods of that kind are usually purchased.

UCC

Represents the Uniform Commercial Code, a broad series of legal provisions that regulate commercial activities across the United States.