Steve MacIntosh Would Like to Have $20,000 in 5 Years

question 75

Multiple Choice

Steve MacIntosh would like to have $20,000 in 5 years time to start his own business.The amount that MacIntosh would have to invest today,assuming an interest rate of 8% compounded quarterly,in order to reach his goal is:

• A)$13,612.00
• B)$29,386.00
• C)$79,854.00
• D)$13,459.43

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Definitions:

Real Exchange Rate

The rate at which goods and services of one country can be exchanged for those of another, adjusting for price level differences.

Trade Deficit

The economic condition that occurs when a country imports more goods and services than it exports.

Net Exports

The net amount obtained by subtracting a nation's total imports from its total exports.

Imports

Goods or services brought into one country from another for the purpose of being sold or used, contributing to the domestic supply of products.