Use the Data in Table 3

question 20

Multiple Choice

Use the data in table 3.1 to answer the following question(s) :
Table 3.1
-Refer to Table 3.1 above. How much will you need to deposit today in an account paying 7% if you wish to have $1,000 in 5 years?

• A) $1,403
• B) $713
• C) $5,751
• D) $4,100

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Definitions:

Midpoint Method

A technique used in economics to calculate the elasticity of demand or supply, minimizing the bias in calculation by taking the average of the initial and final quantities and prices.

Price Elasticity

A measure of how much the quantity demanded of a good changes in response to a change in its price, indicating how sensitive consumers are to price changes.

Elastic Section

Part of a demand curve where a small change in price leads to a relatively large change in quantity demanded, indicating high price sensitivity.

Demand Curve

A graphical representation showing the relationship between the price of a good and the quantity of the good demanded by consumers.