Betty Wants to Accumulate $1 Million by the End of 20

question 76

Multiple Choice

Betty wants to accumulate $1 million by the end of 20 years by making equal annual year-end deposits over the next 20 years.Assuming Betty can earn 10 percent over this period,how much must she deposit at the end of each year?

• A)$18 560
• B)$22 480
• C)$27 760
• D)$17 460

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Definitions:

Consumer Equilibrium

A state where a consumer has allocated their income in a way that maximizes their utility, given the prices of goods and services.

Total Utility

The complete satisfaction or happiness a consumer derives from consuming a particular quantity of goods or services.

Consumer Equilibrium

A state where a consumer has allocated their income in a way that maximizes their utility, given their budget constraints and the prices of goods and services.

Total Utility

The entire satisfaction or pleasure a consumer obtains from consuming a given quantity of goods or services.