Taylor Has the Following Assets and Liabilities Suppose That Taylor Receives a $10,000 Bonus from Her Employer

question 124

Multiple Choice

Taylor has the following assets and liabilities: $$\begin{array} { l | r } \text { Two cars } & \$ 15,000 \\\text { House } & \$ 400,000 \\\text { Mortgage } & \$ 300,000 \\\hline \text { Cash } & \$ 1,000 \\\text { Car loars } & \$ 5,000 \\\hline \text { Checkire accourtbalarce } & \$ 3,000 \\\text { Credit card balarce } & \$ 3,000\end{array}$$  
Suppose that Taylor receives a $10,000 bonus from her employer. If she puts that money toward her mortgage, her wealth would ________; if she puts that money in her checking account, her wealth would ________.

• A)increase to $121,000; decrease to $101,000
• B)increase to $115,000; decrease to $95,000
• C)increase to $121,000; increase to $121,000
• D)increase to $115,000; increase to $115,000

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Definitions:

Measured Weight

The weight of an object or individual as determined through the use of scales or other measurement tools.

Binomial Experiment

An experiment or trial that fits the criteria of having a fixed number of trials, only two possible outcomes, independent trials, and a constant probability of success.

Number of Successes

In a statistical experiment, it refers to the count of times an event of interest occurs.

Louisiana Territory

A vast region of North America that was purchased by the United States from France in 1803, doubling the size of the country and opening the way for westward expansion.