Janice Would Like to Send Her Parents on a Cruise

question 7

Multiple Choice

Janice would like to send her parents on a cruise for their 25th wedding anniversary.She has priced the cruise at $15,000 and she has 5 years to accumulate this money.How much must Janice deposit annually in an account paying 10 percent interest in order to have enough money to send her parents to cruise? (Round to the nearest whole dollar)

• A) $1,862
• B) $2,457
• C) $3,000
• D) $2,234
• E) $2,135

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Definitions:

Subjective Standard

A criterion for judgment that varies based on individual perceptions, feelings, or opinions, rather than objective external factors.

Objective Impossibility

A situation where the fulfillment of a contract is literally impossible due to circumstances beyond the control of the involved parties.

Subjective Impossibility

A situation where a party to a contract feels personally unable to perform their obligations, but the performance may still be possible by someone else.

Commercial Impracticability

A legal doctrine allowing parties to suspend or terminate their contractual obligations when unexpected events fundamentally alter the nature of the contract and performance becomes unfeasibly burdensome.