How Much Must You Deposit in an Account Today in Order

question 47

Multiple Choice

How much must you deposit in an account today in order to have $1,000 in your account at the end of two years if you can earn 6.5% per year on your money? Round your answer to the
Nearest dollar.

• A)$939
• B)$914
• C)$885
• D)$882

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Definitions:

Sales Response Function

A model that predicts the sales or market share response of a product or service to marketing effort or investment.

Contribution Margin

The amount by which sales revenue exceeds variable costs. It is used to cover fixed costs and generate profit.

Positive Deviation

An instance where performance or results exceed the expected standards or averages, often interpreted as an improvement or success.

SWOT Analysis

A strategic planning technique used to identify an organization's Strengths, Weaknesses, Opportunities, and Threats.