You Have Decided to Save $30 a Week for the Next

question 109

Multiple Choice

You have decided to save $30 a week for the next three years as an emergency fund. You can earn 3.5% compounded weekly. How much would you have to deposit in one lump sum today to have
The same amount in your savings at the end of three years?

• A) $4,288.87
• B) $4,305.19
• C) $4,382.74
• D) $4,414.14
• E) $4,441.26

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Definitions:

Money Supply

The entirety of monetary resources accessible in an economy during a specific period.

Rational

Characterized by clear and logical thinking, often with regard to fulfilling one's personal goals or making decisions based on empirical evidence and reasoning.

Unemotional Self-interest

Refers to actions motivated purely by personal gain without regard to emotions or moral considerations.

Q

Generally denotes quantity in economic and mathematical models, referring to the amount of goods or services.