Assuming That University Costs Continue to Increase an Average of 4

question 62

Multiple Choice

Assuming that university costs continue to increase an average of 4% per year and that all her university savings are invested in an account paying 7% interest, then the amount of money she will need to have available at age 18 to pay for all four years of her undergraduate education is closest to:

• A)$97 110
• B)$101 291
• C)$107 532
• D)$50 000

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Definitions:

Promissory Note

A financial instrument that contains a written promise by one party to pay another party a definite sum of money either on demand or at a specified future date.

Fraud in the Inducement

A deceptive practice intended to mislead someone into entering a contract or agreement by providing false statements or misleading information.

Warranty Liability

The legal obligation of a seller to provide compensation for faults in goods or property that were sold under warranty.

Primarily Liable

The direct obligation of an entity or individual to pay a debt or fulfill a contractual commitment without depending on another's performance of duty.