Sara Wants to Have $500,000 in Her Savings Account When

question 4

Multiple Choice

Sara wants to have $500,000 in her savings account when she retires.How much must she put in the account now,if the account pays a fixed interest rate of 8%,to ensure that she has $500,000 in 20 years' time?

• A)$107,274
• B)$144,616
• C)$180,884
• D)$231,480

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Definitions:

Short Run

A period in economics where at least one factor of production is considered fixed, allowing only some variables, like output, to change.

Short Run

A period in economics during which at least one input, such as plant size, is fixed and cannot be changed.

Firm's Output

The total quantity of goods or services produced by a company or business within a specific period.

Short Run

A period in economic analysis where at least one factor of production is fixed, limiting the immediate ability of businesses to adjust to market changes.