You Wish to Make a Substantial Down Payment on a Lake

question 26

Multiple Choice

You wish to make a substantial down payment on a lake cottage and you currently have $15,725 invested at an annual rate of 2.50%.How much money will be in the account in 3.5 years if it continues to earn at its present rate?

• A)$18,325
• B)$20,579
• C)$17,144
• D)$19,605

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Definitions:

Consideration

A core concept in contract law that requires a bargain or something of value to be exchanged between parties for a contract to be valid.

Equitable Estoppel

A legal principle preventing someone from arguing something contrary to a claim if a previous action or agreement implied that claim.

Written Promise

A documented commitment by one party to perform or refrain from performing certain actions for another party.

Reasonable Amount

An amount that is considered fair, appropriate, and not excessive under the circumstances, often used in legal and financial contexts.