How Much Must Be Deposited on January 1, 2014 in a Savings

question 24

Multiple Choice

How much must be deposited on January 1, 2014 in a savings account paying 6% annually in order to make annual withdrawals of $30,000 at the end of the years 2014 and 2015? The present value of one at 6% for one period is .9434.

• A) $55,002
• B) $56,610
• C) $60,000
• D) $26,700

---

Definitions:

Rice and T-shirts

Representative commodities in discussions of global trade and economy, illustrating basic needs (food) and global manufacturing (apparel).

Absolute Advantage

A condition where a country, individual, or firm can produce a good or service at a lower cost and more efficiently than others.

Computer Components

The physical parts or elements of a computer system, such as the central processing unit (CPU), memory (RAM), storage devices, and peripherals, which work together to perform computing tasks.

Tariff

A financial charge instituted by a government on goods exported from or imported into a country.