Regular Contributions of $200 Are Made at the End of Each

question 103

Multiple Choice

Regular contributions of $200 are made at the end of each month for five years into a savings account earning interest at 4% compounded quarterly. The annuity can be classified as

• A) ordinary general annuity
• B) ordinary annuity due
• C) ordinary simple annuity
• D) perpetuity
• E) this is not an annuity

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Definitions:

Unit Of Input

A measurement of the amount of resources (labor, materials, etc.) used in the production of goods and services.

Average Product

The output per unit of input, calculated by dividing the total product by the quantity of input.

Marginal Product

Marginal product is the increase in output that results from adding one more unit of a specific input, holding all other inputs constant.

Fixed Costs

Expenses that do not change with the level of production or sales, such as rent, salaries, and insurance premiums.