You Want to Deposit Amounts in the Bank at the End

question 30

Multiple Choice

You want to deposit amounts in the bank at the end of 2011,2012,2013 and 2014,so that you have $1259.71 in your account on 1 January 2015.Calculate how large each of your payments would need to be if the bank compounds quarterly at 8% p.a.

• A)$279.56
• B)$259.83
• C)$284.19
• D)$314.93

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Definitions:

Macroeconomist

An economist who studies broad economic factors affecting the economy as a whole, such as inflation, unemployment, and national income.

Positive Statement

An objective and fact-based statement that can be tested and validated, focusing on describing how the world is.

Normative Statement

An opinion or judgment that suggests how things should be, rather than stating factual or objective observations.

Government Spending

The total amount of money that the government expends on public services and projects, such as infrastructure and defense.