Marcy Wants to Buy a New Car in One Year

question 27

Multiple Choice

Marcy wants to buy a new car in one year.  She currently has $1,500 in the bank. Marcy plans to save $250 a month towards the car.  How much will Marcy have for a down payment assuming her bank pays 6% compounded monthly? ​

• A)​$4,584
• B)​$3,084
• C)​$4,217
• D)​$4,676

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Definitions:

Excise Tax

A tax charged on specific goods and services, such as tobacco and alcohol, often implemented to discourage their use or raise government revenue.

Upsloping

Typically refers to a graph line that shows an increase in a variable as another variable increases; commonly used in economics to describe supply curves.

Suppliers

Entities that provide goods or services to other individuals or organizations, typically for resale or business use.

Federal Income Tax

A tax levied by the United States government on the annual earnings of individuals, corporations, trusts, and other legal entities.