Barbara Knows That She Will Need to Buy a New

question 276

Multiple Choice

Barbara knows that she will need to buy a new car in 2 years. The car will cost $15,000 by then. How much should she invest now at 8%, compounded quarterly, so that she will have enough to buy a new car?

• A) $12,802.36
• B) $13,888.89
• C) $13,868.34
• D) $11,907.48

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Definitions:

Bank Reconciliation

The process of matching up the balances in a company's accounting records for a cash account to the corresponding information on a bank statement.

Gear Icon

A common symbol in software and applications that provides access to settings or tools.

Create (+) Icon

A graphical interface element typically used in software applications to indicate the functionality for adding new items, such as records, files, or directory entries.

Bank Deposit

The act of placing money into a banking institution for safekeeping, which can also refer to the money that has been deposited.