Suppose That Craig Nordstrom Deposits His $11,500 Bonus in an Account

question 12

Multiple Choice

Suppose that Craig Nordstrom deposits his $11,500 bonus in an account that earns an annual rate of 7.5%, compounded quarterly, and makes additional deposits of $800 at the end of each quarter for the next 24.5 years, until he retires. How much is in the account after the last deposit is made? Round your answer to the nearest cent. ​

• A)$362,815.63
• B)$220,793.91
• C)$71,010.86
• D)$149,783.06
• E)$291,804.77

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Definitions:

Production Possibilities Curve

A graphical representation showing the maximum quantity of two goods that can be produced with fixed resources and technology, demonstrating the trade-offs in production.

Unemployment

A condition where people who have the ability and desire to work are unable to secure jobs.

Production Possibilities Frontier

A curve depicting the maximum attainable combinations of two or more products that may be produced with available resources and technology.

Inward Shift

Describes a decrease in the potential output of an economy, often visualized as a leftward shift of the Production Possibility Frontier (PPF).