You Are Scheduled to Receive $18,000 in fiVe Years

question 267

Multiple Choice

You are scheduled to receive $18,000 in five years. When you receive it, you will invest it for five more years at 8.6% per year. How much will you have at the end of this time? What would be an
Equivalent Present Value?

• A) $15,916
• B) $14,916
• C) $13,916
• D) $12,916
• E) $11,916

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Definitions:

Keynesians

Economists or the economic theory advocating for government intervention in the economy, especially fiscal policy, to manage demand and address unemployment.

Say's Law

A principle that asserts supply creates its own demand, suggesting that producing goods and services generates the means and willingness to purchase other goods and services.

Economy Produces

Refers to the total output of goods and services generated by an economy within a specific period.

Real Balance Effect

The influence a change in household purchasing power has on the quantity of real GDP that consumers are willing to buy.