How Much Would Need to Be Contributed Each Year for 30

question 81

Essay

How much would need to be contributed each year for 30 years to accumulate $1,300,000 assuming a return on the investments of 8 percent? Round to the nearest dollar if needed.
(a)$43,333
(b)$46,800
(c)$11,476
(d)$15,000

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Definitions:

Kinked Demand Curve

A theory in economics that suggests that prices in a monopolistic competition scenario may remain stable because competitors will match price decreases but not price increases.

Price

The amount of money expected, required, or given in exchange for something.

Kinked Demand

A demand curve that has a distinct bend or "kink," often used to describe oligopolistic markets where firms face different elasticities for price increases versus price decreases.

Oligopolistic Competition

A market structure in which a few firms dominate. Each firm is aware of the actions of others and may engage in strategic decision making.