If you want to have $50,000 in 5 years, how much would you need to put in your savings account now if the savings account pays 3 percent interest?
What will be an ideal response?
$50,000 / (1.03)5 = $43,130.44
You might also like to view...
If the nominal interest rate in an economy is 6% and the inflation rate in the economy is 10%, then the real interest rate is:
A) -6%. B) 10%. C) 6%. D) -4%.
The relationship between distance traveled in 5 hours and speed shown in the figure above is
A) direct, linear. B) inverse, linear. C) direct, non-linear. D) inverse, positive. E) direct, negative.
In the neoclassical theory of growth, growth in ________ is the result of luck
A) saving B) income C) technology D) the real interest rate
While money is an asset not all assets are money because:
A. only money is a good asset to hold during times of inflation. B. money must be legal tender. C. only money stores value. D. money works as a means of payment.