Carol Wants to Invest Money in a 6% CD Account

question 69

Multiple Choice

Carol wants to invest money in a 6% CD account that compounds semiannually. Carol would like the account to have a balance of $50,000 five years from now. How much must Carol deposit to accomplish her goal?

• A)$35,069.
• B)$43,131.
• C)$37,205.
• D)$35,000.PV = $50,000 x .744409* = $37,205 *PV of $1: n=10; i=3%

---

Definitions:

Marginal Revenue Product

The additional revenue generated from employing one more unit of a resource, such as labor or capital.

Total Revenue

is the overall amount of money generated by a business from its activities, including sales of goods or services, before any expenses are deducted.

Labor

Any mental or physical exertion on the part of a human being that is used in the production of a good or service. One of the four economic resources.

Purely Competitive

A market structure characterized by many sellers offering identical products, where no single seller can influence the market price.