Use the Following Information to Solve the Questions

question 77

Short Answer

Use the following information to solve the Questions:
You want to invest a lump sum at 5% interest so as to have $100,000 in 20 years.
-If you find an investment with annual compounding, how much should you invest?

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Definitions:

Widgets

A generic term for any hypothetical or unspecified product or manufactured good used in discussions of business and economics.

Price Ceiling

A government-imposed limit on how high a price can be charged for a product or service.

Producer Surplus

The variation between the price that sellers expect to receive for a product or service and the actual price they end up getting.

Consumer Surplus

The difference between the maximum amount that consumers are willing to pay for a good or service and the amount they actually pay.