What Is the Future Value of a Series of $500

question 7

Multiple Choice

What is the future value of a series of $500 annual payments received at the end of each of the next 5 years' worth if they are invested at an annual rate of return of 6%?

• A)$1,223.44
• B)$2,176.65
• C)$2,818.50
• D)$3,309.76

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Definitions:

Elastic than Demand

Refers to a situation where the quantity demanded of a good is more sensitive to changes in price, indicating a high price elasticity of demand.

Cereal

A food product made from processed grains, often eaten as breakfast and typically served cold with milk.

Price Elasticity of Demand

A measure of how responsive the quantity demanded of a good is to a change in its price, with higher elasticity indicating greater sensitivity.

Demand

The amount of a product or service that buyers are prepared and capable of buying at different price levels over a specified time frame.