The Olfert Contractors, Inc

question 92

Essay

The Olfert Contractors, Inc., are saving $958.00 every month in order to purchase a new paving machine in twelve years. Their savings certificates pay 6% p.a. compounded monthly. How much of the maturity value will be interest?

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Definitions:

Merchant

An individual or business entity engaged in the trade of goods, services, or both to consumers, primarily for earning a profit.

Original Owner

Refers to the first owner or possessor of an item or property after it was created or came into being.

Shipment Contract

An agreement in which the seller is obligated to send goods to a buyer, but the risk of loss passes to the buyer when the goods are delivered to the carrier.

Title Passes

The point at which ownership of property is transferred from one party to another according to the terms of a contract.