What Single Amount Deposited Now into an Account Paying $5 \frac { 2 } { 3 } \%$

question 145

Multiple Choice

What single amount deposited now into an account paying $5 \frac { 2 } { 3 } \%$ annual interest, compounded quarterly, would fund an annuity paying $\$ 3,130$ quarterly for the next 28 years?

• A) \(\quad \$ 175,242.28\)
• B) \(\$ 175,204.05\)
• C) \(\quad \$ 175,359.25\)
• D) \(\$ 175,229.05\)

---

Definitions:

Price Elasticity of Demand Coefficient

A metric that determines how the demand for a product reacts to adjustments in its price.

Midpoint Formula

A mathematical method used to calculate the average or midpoint of two points on a line, often used in economics to find the elasticity of demand.

Resource Costs

The expenses associated with the acquisition and use of raw materials, labor, and other inputs required for the production of goods or services.