Refer to the Figure Below A)1; 4
B)3; 2
C)4; 4
D)2; 3

question 53

Multiple Choice

Refer to the figure below. If the price of a t-shirt is $10 and the price of a sweater is $40, then the rational spending is satisfied when the consumer purchases ______ t-shirts and ______ sweaters. $$\begin{array} { | c | c | c | } \hline \text { Units } & \begin{array} { c } \text { Utils Per Year } \\\text { from T-shirts }\end{array} & \begin{array} { c } \text { Utils Per Year } \\\text { from Sweaters }\end{array} \\\hline 0 & 0 & 0 \\\hline 1 & 75 & 400 \\\hline 2 & 135 & 720 \\\hline 3 & 180 & 960 \\\hline 4 & 210 & 1120 \\\hline\end{array}$$

• A)1; 4
• B)3; 2
• C)4; 4
• D)2; 3

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Definitions:

Monthly Payment

A regularly scheduled payment, typically made each month, towards a debt or other financial obligation.

Annuities

Financial products that pay out a fixed stream of payments to an individual, typically used as an income stream for retirees.

Present Values

The current value of a future sum of money or stream of cash flows given a specified rate of return.

Annuities

Financial products that provide a series of payments at regular intervals, often used as an income stream for retirees.