You Plan to Buy a Car in One Year

question 196

Multiple Choice

You plan to buy a car in one year. It will cost $15,000 at that time. You now have $5,000 in a bank that pays 12% compounded monthly. You will save for the car by making monthly deposits in the bank for the next 12 months. How much will you have to deposit each month to have enough money in total to make the purchase?

• A)$738.50
• B)$835.18
• C)$769.43
• D)$682.80

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Definitions:

Exclusive Dealing Agreement

A contract between a seller and buyer in which the buyer agrees to purchase all of a particular product from the seller, excluding competitors.

Significant Anticompetitive Effect

Actions or agreements that significantly reduce competition in a market, in violation of antitrust laws.

Clayton Act Violations

Infractions of the Clayton Antitrust Act, a U.S. law designed to prevent anticompetitive practices and promote fair competition in the marketplace.

Conglomerate Merger

A conglomerate merger is the combination of two or more companies engaged in entirely different business activities, usually to diversify product lines and decrease risk.