How Much Must Be Deposited Today in an Account Earning

question 116

Multiple Choice

How much must be deposited today in an account earning 6% annually to accumulate a 20% down payment to use in purchasing a car one year from now, assuming that the car's current price is $20,000, and inflation will be 4%?

• A) $3,774.61
• B) $3,782.20
• C) $3,924.53
• D)$4,080.08

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Definitions:

Pollution Emissions

The release of pollutants into the environment, typically from industrial activity, transportation, and other sources harmful to human health and the planet.

Government Charges

Fees or levies imposed by the government on individuals, businesses, or transactions to fund public services and initiatives.

Common Law

A legal system based on judicial decisions and precedents rather than statutory laws.

Warming

A process wherein the average temperature of the Earth's atmosphere and oceans increases, often discussed in the context of global climate change.