Solve the Problem. Round to the Nearest Cent

question 18

Multiple Choice

Solve the problem. Round to the nearest cent.
-To start a new business, Eric invests $765.13 each month in an ordinary annuity paying 7% interest Compounded monthly. Find the amount in the annuity after 5 years.

• A) $25,005.41
• B) $54,777.88
• C) $55,543.01
• D) $54,012.75

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Definitions:

Structural Unemployment

Unemployment arising from fundamental changes in the economy that displace workers, such as technological advancements or shifts in demand.

Stagflation

A situation where an economy experiences stagnant growth, high unemployment, and high inflation simultaneously, presenting a challenge to economic policy.

Actual Price Level

The current level of prices in the economy for goods and services, reflecting inflation or deflation in the market.

Real Wages

The purchasing power of wages, taking into account the effects of inflation or deflation, representing the quantity of goods and services wages can buy.