Susie Wants to Know How Much She Needs to Save

question 77

Multiple Choice

Susie wants to know how much she needs to save today to have $5,000 in five years.Which of the following tables should she use?

• A)Present value $1
• B)Present value ordinary annuity
• C)Future value $1
• D)Future value ordinary annuity

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Definitions:

Shovel

A tool typically used for digging, lifting, and moving bulk materials, such as soil, coal, gravel, snow, sand, or ore.

Demand Curve

A graphical representation that shows the relationship between the quantity of a good that consumers are willing to purchase and its price.

Consumers

Individuals or groups who purchase goods and services for personal use and not for manufacturing or resale purposes.

Microeconomic Theory

The study of individual, household, and firm behaviors in decision making and allocation of resources.