You Want to Have $100,000 in Five Years

question 247

Multiple Choice

You want to have $100,000 in five years.If the interest rate is 8 percent,about how much do you need to save today?

• A)$66,225.25
• B)$67,556.42
• C)$68,058.32
• D)$71,428.57

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Definitions:

Marginal Cost

The increase in cost resulting from the production of one additional unit of a good.

Total Cost Curve

A graphical representation showing the total cost of producing varying quantities of output, typically sloping upwards as output increases.

Average Total Cost

The total cost of production divided by the number of units produced, representing the cost per unit.

Marginal Cost

The cost added by producing one extra item of a product, integral for decision-making in production.