Howard Is Saving for a Long Holiday

question 18

Multiple Choice

Howard is saving for a long holiday. He deposits a fixed amount every month in a bank account with an EAR of 7.5%. If this account pays interest every month then how much should he save from each monthly wage in order to have $10,000 in the account in two years' time?

• A) $388
• B) $161
• C) $166
• D) $4818

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Definitions:

Preponderance

The standard of evidence required in most civil cases, whereby the greater weight of the evidence must support the claims of one side over the other.

Roscoe Pound

An influential legal scholar and educator in the early 20th century, known for his contributions to the sociological jurisprudence movement.

Legal Questions

Inquiries that pertain to the interpretation or application of law, typically requiring professional legal assessment or judgment.

Benjamin Cardozo

A distinguished jurist who served as an Associate Justice of the Supreme Court of the United States from 1932 until his death in 1938, known for his significant contributions to the development of American common law.