The Amount to Be Invested Now to Accumulate to a Certain

question 1

Multiple Choice

The amount to be invested now to accumulate to a certain amount in the future at a specified interest rate is called the:

• A) time value of money.
• B) present value of an investment.
• C) future value of an investment.
• D) None of the above.

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Definitions:

Competitive Price-Taker

A firm or individual in a market structure that has no control over the market price and must accept the prevailing market price for its product or service.

Output

The total amount of goods or services produced by a person, machine, company, or economy.

Price

The sum of money needed to buy a product or service.

Competitive Price-Taker

A firm in a competitive market that has no ability to influence the price of the product it sells; it must take the market price as given.