Gordon Started Saving $25 a Month at Age 20 in an Account

question 129

Multiple Choice

Gordon started saving $25 a month at age 20 in an account earning 4% compounded monthly.At age 40 he would have ____ in this account.(Use time value tables or financial calculator)

• A) $6,000
• B) $7,170
• C) $9,169
• D) $9,255
• E) $9,890

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Definitions:

Warehouse Space

A designated area used for storing goods in order to ensure their preservation, organization, or security before distribution.

Perfectly Competitive Industry

An industry structure where many firms produce identical products, entry and exit are easy, and no single firm can influence the market price.

Demand Curve

A graph showing the relationship between the price of a good and the quantity demanded, with a typical downward slope indicating that demand increases as price decreases.

Producer's Surplus

The difference between what producers are willing to accept for a good or service and what they actually receive.