You start working at age 20 and you plan to deposit $5,000 in a savings account every year for the next 45 years. a. At the end of this time, how much money will you have if the interest rate is 5%? b. You decide that's not enough money
How much will you have to save every year if you wish to have $1,000,000 when you retire?
a. FV = 5,000 {((1 + i)n - 1)/ i } = $798,500
b. You will have to save $6,261 per year.
Economics
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In a market supply and demand graph, the socially efficient outcome occurs
a. Where the private marginal benefits intersect with the social marginal costs b. Where the private marginal benefits intersect with the private marginal costs c. Where the social marginal benefits intersect with the social marginal costs d. Where the social marginal benefits intersect with the private marginal costs e. Where externalities are maximized
Economics
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Exhibit 30-1
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Economics