Jacques Received the Proceeds from an Inheritance on March 15

question 109

Short Answer

Jacques received the proceeds from an inheritance on March 15. He wants to set aside, in a term deposit on March 16, an amount sufficient to provide a $45,000 down payment for the purchase of a home on November 1. If the current interest rate on 181-day to 270-day deposits is 3.75%, what amount should he place in the term deposit?

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Definitions:

Accounts Payable

Money owed by a company to its creditors for goods and services that have been delivered but not yet paid for.

Enter Bills Window

A feature in accounting software where users can input and manage bills they need to pay to suppliers or service providers.

Checking Account

A bank account from which payments can be ordered by the account holder, typically used for day-to-day financial transactions.

Accounts Payable Aging

A report that categorizes a company's accounts payable according to the period of time an invoice has been outstanding, helping to manage debts effectively.