Much Would $5,000 Due in 25 Years Be Worth Today

question 84

Multiple Choice

much would $5,000 due in 25 years be worth today if the discount rate were 5.5%?

• A)$1,067.95
• B)$1,124.16
• C)$1,183.33
• D)$1,245.61
• E)$1,311.17

Recognize the contribution of significant economists to economic theory and policy.

Analyze the effectiveness of various economic policies in different economic conditions.

Appreciate the relevance of global economic integration and international capital flows on national economic policies.

Understand the impact of internationalization on macroeconomic policy.

---

Definitions:

Sales Quantity

The total number of units of a product sold in a particular period of time.

Costs Per Unit

The total expense incurred to produce, store, and sell one unit of a product, including direct and indirect costs.

Contribution Margin

The surplus of sales revenue over the variable production costs, showing how much revenue aids in covering fixed expenses and producing profit.

Sales Price

The amount of money for which a product or service is sold in the marketplace.