How Much Money Must Be Invested Today in Order to Have

question 1

Multiple Choice

How much money must be invested today in order to have $25,000 at the end of four years if the rate of return is 12% compounded annually?

• A) $15,900.
• B) $17,100.
• C) $19,900.
• D) $22,300.
• E) None of the other answers are correct.

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Definitions:

Limited-number Technique

A marketing strategy that creates a sense of urgency by claiming a product is in short supply, urging quick consumer action.

Scarcity

A basic economic problem arising from the situation in which finite resources are insufficient to satisfy all human wants and needs.

Scarcity

A condition where resources are limited compared to the demands or needs, leading to competition and value appreciation.

Pique Technique

A psychological strategy to capture people's interest by making a request in an unusual manner, thereby increasing the likelihood of compliance.