Taylor Has Saved $400 at the End of Every Month

question 61

Multiple Choice

Taylor has saved $400 at the end of every month for the last 4 years with the intention of paying cash for a new car. She has earned a fixed annual rate of 4% over the 4 year period; interest is compounded monthly. How much can she pay for her new car at the end of the fourth year?

• A) $20,784
• B) $55,705
• C) $17,716
• D) $22,272

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Definitions:

Bad Weather

Unfavorable or destructive atmospheric conditions, including storms, heavy rain, snowfall, hurricanes, or extreme temperatures.

Production Tax

A tax imposed by governments on the production, sale, or use of goods and services within their jurisdiction.

Supply Curve

a graph showing the relationship between the price of a good and the quantity of the good that suppliers are willing and able to supply.

Equilibrium Price

The market price at which the quantity of a good supplied equals the quantity demanded, resulting in market balance.