Jane Wants to Set Aside Funds to Take an Around

question 60

Multiple Choice

Jane wants to set aside funds to take an around the world cruise in four years. Jane expects that she will need $12,000 for her dream vacation. If she is able to earn 8% per annum on an investment, how much will she have to set aside today so that she will have sufficient funds available?

• A) $2,663.
• B) $16,325.
• C) $8,820.
• D) $8,167.

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Definitions:

Product Promotion

Activities undertaken to inform potential customers about a product or service, encouraging its purchase.

Real Characteristics

Essential and tangible attributes or features of goods, services, or economic conditions that can be measured and evaluated.

Economic Profit

The difference between total revenue and total costs, including both explicit and implicit costs, representing the profit beyond the normal return on investment.

Profit-Maximizing

The strategy businesses use to generate the highest possible profit, typically by adjusting price, output, or other operational variables.