MrsSmith Makes 20 Annual Deposits of $2000 into a Retirement

question 11

Multiple Choice

Mrs.Smith makes 20 annual deposits of $2000 into a retirement savings account,first deposit made today.If she earns j₁ = 5% on her money,how much does she have 25 years from today?

• A)$66,131.91
• B)$84,402.94
• C)$88,623.08
• D)$95,454.20

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Definitions:

Average Price Level

A measure of the overall level of prices in an economy, often considered in terms of a price index.

Good and Service

Products that satisfy human wants directly (goods) or indirectly (services).

Hyperinflation

An extremely high and typically accelerating rate of inflation, often exceeding 50% per month, leading to a rapid erosion of the real value of the local currency.

Recession

A significant decline in economic activity across the economy, lasting for months or years, typically visible in real GDP, real income, employment, industrial production, and wholesale-retail sales.