A Property Owner Has Several Rental Units and Wants to Build

question 35

Multiple Choice

A property owner has several rental units and wants to build more. How much of each month's rental income should be deposited at the beginning of each month in an account that earns an annual rate of 6.8%, compounded monthly, if the goal is to have $150,000 at the end of 7 years? Round your answer to the nearest cent.

• A)$3,155.45
• B)$1,391.38
• C)$1,742.00
• D)$2,270.66
• E)$1,142.50

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Definitions:

Vertical Axis

In a graph or chart, the y-axis along which numerical values are plotted to measure the outcome variable.

Price Level

The current mean cost of goods and services across the full economic production.

Money Demand

The desired holding of financial assets in the form of money, which varies inversely with the interest rate.

Price Level

The economy-wide current average price for its entire range of goods and services.