Jakob Received a $1,000-A-Year Raise in January, Sold Stocks in March

question 56

Multiple Choice

Jakob received a $1,000-a-year raise in January, sold stocks in March for $6,000 that were originally purchased for $4,000, and in July had a $100 monthly increase in mortgage payments on his adjustable rate mortgage. The increased mortgage payment started in July and was in effect for the remainder of the year. What was the total impact on Jakob's cash flow for the year?

• A) $1,000
• B) $5,400
• C) $6,400
• D) $7,600

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Definitions:

Fixed Amount

A specific sum of money that does not change or vary under specified conditions.

Gratuitous

Provided without requiring anything in return; given freely or without charge.

Service

The provision of assistance or professional work performed for another person or organization.

Quantum Meruit

A legal principle meaning "as much as he has deserved," used to determine the amount of compensation due for services provided when there is no existing contract.