Sara and Rebecca Entered a Variety Store Owned by Charles

question 62

True/False

Sara and Rebecca entered a variety store owned by Charles.Sara purchased two chocolate bars from Charles,and gave one to Rebecca.Unknown to Sara,Rebecca,or Charles the chocolate bar that Sara gave to Rebecca contained a piece of metal that had fallen into the mixture when the chocolate bar was made.When Rebecca attempted to eat the chocolate,she damaged one of her teeth.She was obliged to have the tooth repaired by a dentist,and in addition,lost a day's work because of the painful injury to her mouth.Her total loss amounted to $300.00.
-Sara may be successful in a legal action against Charles,since Charles sold the chocolate bar.

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Definitions:

Semiannual Interest

Interest that is calculated and paid twice a year, commonly found in bonds and loans.

Present Value

A financial concept that represents the current value of a future amount of money or stream of cash flows given a specified rate of return.

Compounded Annually

The process of calculating interest on the initial principal, which also includes all the accumulated interest from previous periods on a loan or deposit.

Amortization Schedule

A table detailing each periodic payment on a loan, showing the amount of principal and the amount of interest.