The Accumulated Value of N Payments of $500 at I

question 43

Multiple Choice

The accumulated value of n payments of $500 at i immediately after the n^th payment is S.Which of the following gives the correct accumulated value immediately after the (n+2) ^th payment of $500?

• A)S(1 + i)+ 2(500)(1 + i)
• B)S + 500(1 + i)+ 500
• C)[S + 500](1 + i)² + 500
• D)S(1 + i)² + 500(1 + i)+ 500

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Definitions:

Marginal Productivity

The additional output that can be produced by adding one more unit of a specific input, keeping all other inputs constant.

Perfectly Competitive

A type of market where numerous small firms compete against each other offering products that are virtually interchangeable and where no single company can dictate the market price.

Marginal Productivity

The additional output that is produced by employing one more unit of a particular input, holding other inputs constant.

Income Distribution

The way in which total income is shared among the population or different groups within society.