Shirley Adds $2,000 to Her Savings on the Last Day

question 328

Multiple Choice

Shirley adds $2,000 to her savings on the last day of each year. Shawn adds $2,000 to his savings on the first day of each year. They both earn an 8% rate of return. What is the difference in their savings account balances at the end of 35 years?

• A) $26,801.89
• B) $26,882.60
• C) $27,570.69
• D) $27,432.74
• E) $29,776.34

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Definitions:

Consumer Surplus

The divergence between anticipated consumer expenditure on a good or service and the actual expenditure.

Surplus II

An excess of production or supply over demand, leading to potential wastage or decrease in prices.

Total Surplus

The total benefits society gains, encompassed by the addition of consumer surplus and producer surplus within a market.

Consumer Surplus

The variation between the sum consumers are willing to allocate for a good or service and the sum they actually allocate.