Mr Fish Wants to Build a House in Ten Years

question 23

Multiple Choice

Mr. Fish wants to build a house in ten years. He estimates that the total cost will be $150,000. If he can put aside $10,000 at the end of each year, what rate of return must he earn in order to have the amount needed?

• A) Between 8% and 10%
• B) Between 6% and 8%
• C) Above 10%
• D) Between 4% and 6%

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Definitions:

Third-Party Claim

A claim made by a defendant against someone who is not already a party to the lawsuit, asserting that this "third party" is actually liable for the plaintiff's damages.

Privity of Contract

A principle indicating that only the parties involved in a contract have the rights and obligations arising from it.

Buyer's Obligation

A purchaser's duty to pay the agreed price for goods or services and to comply with the terms of the contract of purchase.

Credit Sale

A transaction where goods or services are provided in exchange for a promise to pay at a later date.