Sara wants to have $600,000 in her savings account when she retires. How much must she put in the account now, if the account pays a fixed interest rate of 8%, to ensure that she has $600,000 in 20 years?
A) $128,729
B) $180,221
C) $231,712
D) $139,541
Answer: A
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Dinpro has been a major player in the surgical supplies market for over two decades. However,
it has steadily lost ground to United Surgicals over the past two years, with over half the customers preferring to do business with it. Identifying this downward trend, Dinpro has decided that it can wrest back the market leader position through a shrewd pricing strategy. Which of the following pricing strategies would best help Dinpro regain the market leader status? A) withdrawing company products from circulation to create an artificial demand and selling products at higher prices B) setting product prices higher than those of United Surgicals to indicate better product quality C) selling products at prices lower than those of the competition to maximize market share D) introducing innovative products and setting their prices high shortly after launch to recoup development costs