One year ago, the Jenkins Family Fun Center deposited $4,800 in an investment account for the purpose of buying new equipment four years from today. Today, they are adding another $6,600 to this account. They plan on making a final deposit of $8,800 to the account next year. How much will be available when they are ready to buy the equipment, assuming they earn a 9 percent rate of return?

a. $28,098.09
b. $26,935.83
c. $25,415.70
d. $27,185.42
e. $26,077.59

The correct answer is A.

Explanation:

Giving the following information:

One year ago, the Jenkins Family Fun Center deposited $4,800 in an investment account to buy new equipment four years from today. Today, they are adding another $6,600 to this account. They plan on making a final deposit of $8,800 to the account next year.

i= 0.09

To calculate the final value we need to use the following formula:

FV=PV*(1+i)^n

First deposit= 4,800*(1.09)^5= 7,385.39

Second deposit= 6,600*(1.09)^4=9,316.44

Third deposit= 8,800*(1.09)^3= 11,396.26

Total= $28,098.09

the correct answer is economics is a game without winners or losers.

unlike sports or games economic is a game without losers or winner rather it is a game where everyone wins. parties of business doing businesses exchange money with each other and hence exchange is done on the basis of goods. one party takes the goods and other sales it so there is winner on both sides. each party values more highly the good it gets than the good it gives up. both sides exchange only because both intend to increase their value. so there is no concept of lose or win.