Items 65 Through 68 Apply to the Appropriate Use of Interest

question 119

Multiple Choice

Items 65 through 68 apply to the appropriate use of interest tables. Given below are the future value factors for 1 at 8% for one to five periods. Each of the items 65 to 68 is based on 8% interest compounded annually.

-If $6,000 is deposited in a savings account today, what amount will be available six years from now?

• A) $6,000 × 1.080 × 6
• B) $6,000 × 1.080 × 1.469
• C) $6,000 × 1.166 × 3
• D) $6,000 × 1.260 × 2

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Definitions:

Marginal Product

The additional output produced by using one more unit of a given input, holding all other inputs constant.

Marginal Cost Curve

A graphical representation that shows how the cost of producing one additional unit of a good changes as the production volume varies.

Short-Run Marginal Cost

The change in total cost associated with producing one additional unit of output, considering some inputs are fixed.

Embryonic Disk

A key structure in early embryonic development from which the embryo begins to form.