The Amount You Must Deposit Now in Your Savings Account

question 42

Multiple Choice

The amount you must deposit now in your savings account, paying 6% interest, in order to accumulate $6,000 for a down payment five years from now on a new car is

• A)$1,200.
• B)$4,484.
• C)$4,477.
• D)$4,200.

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Definitions:

Double-Entry Bookkeeping System

An accounting technique which records each transaction in two accounts, ensuring the total debits equal total credits.

Fully Integrated Ledger System

A fully integrated ledger system is an accounting system where all the different financial and accounting records are comprehensively interconnected and maintained within a single framework.

Financial Transactions

The process of exchanging assets, settling debts, or conducting monetary dealings between parties.

Accounts Receivable

Funds that a business's customers have yet to pay for products or services received from the business.