Your Goal Is to Have $50,000 in Cash to Build

question 155

Multiple Choice

Your goal is to have $50,000 in cash to build a new home twelve years from now. Your plan is to make one deposit today to fund this goal. How much more will you have to deposit today to fund this goal if you can only earn 4% on your savings rather than 5%?

• A) $3,104.11
• B) $3,188.87
• C) $3,218.07
• D) $3,273.16
• E) $3,387.98

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Definitions:

Price Elasticity

A measure of how much the quantity demanded of a good responds to a change in its price, with high elasticity indicating significant response and low elasticity indicating little to no response.

Oranges

A citrus fruit commonly consumed worldwide, both fresh and in juice form, and used as a commodity in agricultural markets.

Cross-Price Elasticity

A measure of how the quantity demanded of one good responds to a change in the price of another good.

Croissants

A type of light, flaky pastry originating from France.