Gary Has $1,400 to Invest with the Goal of Having

question 38

Multiple Choice

Gary has $1,400 to invest with the goal of having $4,000 available to purchase a used car.If he can earn 12% compounded semiannually on his investment,how long will he have to wait to acquire his car?

• A) Eighteen years
• B) Nine years
• C) Eighteen months
• D) Nine months
• E) Four years

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Definitions:

Capital Expenditures

Money allocated by a business to purchase or improve tangible assets like land, factories, or machinery.

Operating Efficiency

A measure of how well a company uses its resources to produce goods or provide services.

Useful Life

The estimated duration of time a fixed asset is expected to be economically useful to the owner, used for depreciation calculations and planning.

Insurance During Transit

A policy that provides coverage for goods against loss or damage while they are being transported.