In the Current Year, Jerry Pays $8,000 to Become a Charter

question 10

Multiple Choice

In the current year, Jerry pays $8,000 to become a charter member of Mammoth University's Athletic Council. The membership ensures that Jerry will receive choice seating at all of Mammoth's home basketball games. Also this year, Jerry pays $2,200 (the regular retail price) for season tickets for himself and his wife. For these items, how much qualifies as a charitable contribution?

• A)$6,200
• B)$6,400
• C)$8,000
• D)$10,200
• E)None of the above

---

Definitions:

Exact Simple Interest

A calculation method where interest is determined using the actual number of days in a loan period over a 360 or 365-day year, depending on the terms.

365-Day Year

The 365-Day Year is a time measurement convention considering a year to have exactly 365 days, ignoring leap years.

Ordinary Simple Interest Rate

The standard rate at which interest is calculated on a loan or investment, based on the original principal amount only.

360-Day Year

A simplified method of calculating interest using a 360-day year instead of 365 days, commonly used in banking.