If You Want to Save $40 000 for a Down

question 8

Multiple Choice

If you want to save $40 000 for a down payment on a home in five years,assuming an interest rate of 4.5 percent compounded annually,how much money do you need to save at the end of each month?

• A)$666
• B)$609
• C)$622
• D)$597

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Definitions:

Clavicle

A slender, curved long bone that connects the sternum and the scapula; also called the collar bone.

Scapula

Also known as the shoulder blade, it is a large, flat triangular bone located in the upper back, connecting the humerus (upper arm bone) with the clavicle (collarbone).

Humerus

The long bone in the upper arm, extending from the shoulder to the elbow.

Hyoid Bone

A horseshoe-shaped bone in the neck that supports the tongue and is involved in swallowing.