Computing Annuity Payment: Maricela Sanchez Needs to Have $25,000 in Five

question 15

Multiple Choice

Computing annuity payment: Maricela Sanchez needs to have $25,000 in five years. If she can earn 8 per cent on any investment, what is the amount that she will have to invest every year for the next five years? (Round to the nearest dollar.)

• A) $5,000
• B) $4,261
• C) $4,640
• D) $4,445

---

Definitions:

Free Trade

An economic policy that allows imports and exports between countries with minimal or no tariff barriers.

Competition

The rivalry among businesses to attract customers, which can lead to improvements in products, services, and prices.

Efficiency

The optimal allocation of resources to maximize the production of goods and services.

Quota

A government-imposed trade restriction that limits the quantity or monetary value of goods that can be imported or exported during a specific time period.