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

---

Definitions:

Reasonable Care

The degree of caution and concern an ordinarily prudent and rational person would use in similar circumstances.

Business Invitees

Those people, such as customers or clients, who are invited onto business premises by the owner of those premises for business purposes.

Intentional Tort

A legal wrong resulting from actions undertaken with the intent to cause harm or injury.

Liable

Being legally responsible or obligated, often used in the context of bearing the consequences for actions or incurring debts.