Fred and Max Each Want to Have $10,000 Saved fiVe

question 145

Multiple Choice

Fred and Max each want to have $10,000 saved five years from now. Fred can earn 4.35%, compounded annually, on his savings and Max can earn 4.50%, compounded annually, on his
Savings. Both Fred and Max are going to deposit one lump sum today and will not add any
Additional funds to their accounts. Given this, Max _____ deposit _____ Fred to achieve the goal.

• A) Must; more than
• B) Must; at least as much as
• C) Must; as much or more than
• D) Can; less than
• E) Can; the same amount as

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Definitions:

Pizza Price

The cost at which a pizza is offered for sale, which can vary based on location, ingredients, and establishment.

Supply Curve

A graph showing the relationship between the price of a good and the quantity of that good that suppliers are willing to sell.

Pizza

A popular dish of Italian origin consisting of a round, flat base of dough topped with tomatoes, cheese, and various other ingredients baked at a high temperature.

Supply Curve

A graphical representation that illustrates the amount of product businesses are willing to produce and sell at different price points.