saving for a car\nthree years ago, isabel got her first job after graduating from college. once she began…

saving for a car\nthree years ago, isabel got her first job after graduating from college. once she began earning a steady monthly income, she decided to start saving for a new car. to help her stay on track with her savings, isabel set up a savings account at her bank and arranged to automatically transfer money into it. on the 15th of every month, the bank transfers $200 from her checking account to her savings account. the interest on her savings account is 1.70% compounded monthly.\npart a\nquestion\nwhich term best describes the savings account that isabel has set up, given its purpose?\nselect the correct answer.\nemergency fund\nmutual fund\nrainy - day fund\nsinking fund

saving for a car\nthree years ago, isabel got her first job after graduating from college. once she began earning a steady monthly income, she decided to start saving for a new car. to help her stay on track with her savings, isabel set up a savings account at her bank and arranged to automatically transfer money into it. on the 15th of every month, the bank transfers $200 from her checking account to her savings account. the interest on her savings account is 1.70% compounded monthly.\npart a\nquestion\nwhich term best describes the savings account that isabel has set up, given its purpose?\nselect the correct answer.\nemergency fund\nmutual fund\nrainy - day fund\nsinking fund

Answer

Brief Explanations:

A sinking fund is set - aside money for a specific future expense. Isabel is saving for a new car, which is a specific future expense. An emergency fund is for unexpected financial hardships, a mutual fund is an investment vehicle, and a rainy - day fund is for general unexpected expenses.

Answer:

sinking fund