If You Put $1,000 in a Saving Account and Make

question 4

Multiple Choice

If you put $1,000 in a saving account and make no further deposits, what type of calculation would provide you with the value of the account in 20 years?

• A) Future value of a single amount
• B) Simple interest
• C) Present value of a single amount
• D) Present value of a series of deposits
• E) Future value of a series of deposits

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Definitions:

Expected Customer Tastes

Anticipations or predictions about the preferences and desires of customers in relation to products or services in the future.

Price Level

Denotes the average of current prices across the entire spectrum of goods and services produced in the economy.

Skimming Pricing

Setting the highest initial price that customers really desiring the product are willing to pay when introducing a new or innovative product.

Highest Initial Price

A pricing strategy where a new product is introduced to the market at a high price before possibly lowering it later based on demand and competition.