Determine the Principal That Must Be Invested at Rate R $\$ 1,000,000$

question 42

Multiple Choice

Determine the principal that must be invested at rate r, compounded monthly, so that $\$ 1,000,000$ will be available for retirement in t years. $r = 5 \% , t = 10$ (Round the answer upto 2 decimal places.)

• A) \(\$ 707,161.04\)
• B) \(\$ 807,161.04\)
• C) \(\$ 607,161.04\)
• D) \(\$ 507,161.04\)
• E) \(\$ 407,161.04\)

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Definitions:

Scarcity

Fundamental concept of economics that indicates that there is less of a good freely available than people would like.

Production Possibilities Curve

A graphical representation that shows the maximum combination of goods or services that can be produced with a fixed amount of resources.

Efficiently

Pertains to achieving maximum productivity with minimal wasted effort or expense.

Studying

The act of dedicating time and attention to acquiring knowledge or understanding through reading, practice, or instruction.