You Are Currently Entering University and You Want to Buy

question 27

Multiple Choice

You are currently entering university and you want to buy your uncle's Mercedes when you graduate. He has promised to sell it to you for $18,000. How much will you have to deposit now, in an account earning 8%, to have enough money buy the car in 4 years?

• A) $6,122
• B) $4,500
• C) $13,230
• D) $3,060

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Definitions:

Value Requirement

The necessity for something to have worth, importance, or significance in a specific context, often used in legal and financial settings to assess validity or enforceability.

Holder in Due Course

A person who possesses a negotiable instrument for payment in good faith and without knowledge that it is overdue or has been dishonored.

Advanced Shipping Notice

A document sent to a customer in advance of a shipment, detailing the contents and delivery details of the forthcoming delivery.

Universal Product Code

A barcode symbology that is widely used in the United States and other countries for tracking trade items in stores.