Starting One Month from Now,you Would Like to Withdraw $200

question 92

Multiple Choice

Starting one month from now,you would like to withdraw $200 per month from your bank account to pay for your university education.You expect the education (and the withdrawals) to last for the next four years.If the account pays 0.3% interest per month,how much money must you have in your bank account today to support your future needs?

• A) $8,928.37
• B) $7,157.02
• C) $6,711.11
• D) $8,794.50
• E) $7,263.00

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Definitions:

Subjective Standard

A criterion for judgment based on personal feelings, tastes, or opinions rather than external facts.

Outward Manifestations

Actions or expressions that show an intention to make an agreement or contract, observable to others.

Parties' Intent

The actual aim or purpose that contracting parties had in mind at the time of entering into an agreement.

Invitation To Offer

An indication by a party that they are open to negotiation or receiving offers, but are not making a formal offer themselves.