Dean Martin's Income Was $1000 in 1950

question 51

Multiple Choice

Dean Martin's income was $1000 in 1950.If the annual interest rate was five per cent, then the present value of his 1950 income in the year 2000 would be:

• A)$9524
• B)$10 500
• C)$70 400
• D)$114 674

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Definitions:

Competitive Market

A market structure characterized by a large number of sellers and buyers, where no single entity can control prices or influence the market significantly.

Ceiling Price

A ceiling price is a government-imposed limit on how high a price of a good or service can be charged in the market, typically set below the equilibrium price to make goods more affordable.

Competitive Market

A market situation where numerous sellers and buyers exist, and where each has a negligible impact on the market price.

Equilibrium Price

The price at which the quantity of goods supplied is equal to the quantity of goods demanded in a market.