Tony Plans to Deposit $1,000 at the End of Each

question 54

Multiple Choice

Tony plans to deposit $1,000 at the end of each of the next three years.If his funds earn 5% compounded annually,how much will he have at the end of three years?

• A) $3,150.00
• B) $3,175.50
• C) $3,152.50
• D) $3,500.00
• E) $4,310.10

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Definitions:

High Inflation

Is a term describing a situation where prices for goods and services rise excessively, reducing purchasing power and potentially destabilizing the economy.

Recession

A period of temporary economic decline during which trade and industrial activity are reduced, usually identified by a fall in GDP in two successive quarters.

Supply-Side

A macroeconomic theory arguing that economic growth is most effectively created by lowering taxes and decreasing regulation.

Economic Program

A set of coordinated policies and plans undertaken by a government or organization to achieve specific economic objectives.