Jerry Wants to Know How Much He Needs to Save

question 35

Multiple Choice

Jerry wants to know how much he needs to save every year to accumulate $15,000 in five years at a 10 percent interest rate.Which of the following tables should he use?

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

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Definitions:

Second-Degree Price Discrimination

A pricing strategy where prices vary based on the quantity of goods or services purchased, but not on the characteristics of the buyer.

Early Bird

A term typically used to describe someone who completes a task or arrives somewhere early, often to take advantage of benefits or discounts.

Intertemporal Price Discrimination

A pricing strategy where consumers are charged different prices for the same product or service based on when they choose to purchase or consume it.

Marginal Revenue

The additional income earned by selling one more unit of a good or service.