-Refer to the Graph Above to Answer This Question

question 121

Multiple Choice

-Refer to the graph above to answer this question.Which curve illustrates average fixed cost?

• A)1.
• B)2.
• C)3.
• D)4.

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Definitions:

Ordinary Annuity

A series of equal payments made at regular intervals, with the interest compounded at the end of each period.

Compounded Semi-annually

Interest calculation method where interest is added to the principal twice a year, increasing the amount on which future interest is calculated.

Bequest

A transfer of personal property or assets to a beneficiary as dictated by the will of the deceased.

Perpetual Fund

A type of investment fund that has no fixed maturity date, often aiming to provide investors with a steady income indefinitely.