Your Goal Is to Be Able to Withdraw $10,000 for Each

question 47

Multiple Choice

Your goal is to be able to withdraw $10,000 for each of the next nine years beginning one year from today and also to withdraw $50,000 ten years from today.The return on the investment is expected to be 8%.The amount that needs to be invested today is closest to:

• A)$60,709.
• B)$85,629.
• C)$69,776.
• D)$117,884.

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Definitions:

Variable Costs

Costs that change in proportion to the level of output in the production process.

Total Fixed Cost

The sum of all costs that remain constant regardless of the level of production or output in the short run.

Marginal Cost

The expense associated with manufacturing an extra unit of a product or service.

Variable Cost

Variable cost pertains to a cost that changes in proportion with the level of activity or volume of production in a company.