Jane Wants to Set Aside Funds to Take an Around

question 29

Multiple Choice

Jane wants to set aside funds to take an around the world cruise in four years. Jane expects that she will need £15,000 for her dream vacation. If she is able to earn 8% per annum on an investment, how much will she need to set aside at the beginning of each year to accumulate sufficient funds?

• A) £3,329
• B) £20,406
• C) £11,025
• D) £3,082

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Definitions:

Negotiable Instrument

A formal written commitment to pay a particular amount of money, either when asked or at an agreed-upon time, with the individual who will make the payment specified in the document.

Enforceable Assignment

A transfer of rights or property that is valid under law, allowing the assignee to enforce the assignment against the assignor and possibly against third parties.

Words Of Negotiability

Words of negotiability are specific phrases or terms included on financial instruments like checks or promissory notes that allow them to be transferred from one party to another.

Bearer Instruments

Financial documents that accord ownership or payment to the person physically holding the document.