The Amount You Must Deposit Now in Your Savings Account

question 49

Multiple Choice

The amount you must deposit now in your savings account paying 6% interest in order to accumulate $6000 for a down payment 5 years from now on a new car is

• A) $1200.
• B) $4484.
• C) $4477.
• D) $4200.

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Definitions:

Seller-Financed Mortgage

A real estate purchase financing method where the seller extends credit to the buyer to purchase the property.

Interest Received

The amount earned from interest-bearing accounts or investments, such as savings accounts or bonds, which is usually taxable income.

Itemized Deductions

Deductions from taxable income that occur when taxpayers list out specific allowable expenses on their tax return.

State Taxes Paid

State Taxes Paid includes any taxes that individuals or businesses pay to state governments, which can include income tax, sales tax, and property tax.