You Would Like to Have $50,000 Saved at the End

question 39

Multiple Choice

You would like to have $50,000 saved at the end of Year 5.At the end of Year 2,you can deposit $7,500 for this purpose.If you earn 4.5 percent,how much must you deposit today to reach your goal assuming no other deposits are made?

• A)$33,254.58
• B)$33,108.09
• C)$34,276.34
• D)$34,642.28
• E)$34,912.63

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Definitions:

Market Prices

The current price at which an asset or service can be bought or sold, determined by supply and demand in an open market.

Entrepreneurs

Individuals who start, manage, and assume the risks of a business or enterprise, often introducing innovations or exploring new market opportunities.

Costs of Production

The total expenses incurred in manufacturing a product or providing a service, including raw materials, labor, and overheads.

Competitive Conditions

The characteristics of a market where multiple sellers are trying to attract the same buyers, leading to benefits for consumers through lower prices and better quality.