A man who is going to be living abroad for 2 years wants to buy an ordinary annuity that will provide monthly payments of $750 to his parents at the end of each month while he is gone. The interest rate he can obtain is 6% compounded monthly. a) Over the 2 years, how much money will his parents receive from their son?
b) What is the amount of the annuity that he must buy now (present value) to generate these payments?

What is the difference between total utility and marginal utility? a. marginal utility is subject to the law of diminishing marginal utility while total utility is not. b. total utility represents the consumer optimum while marginal utility gives the total utility per dollar spent on the last unit. c. total utility is the total amount of satisfaction derived from consuming a certain amount of a good while marginal utility is the additional satisfaction gained from consuming an additional unit of the good. d. marginal utility represents the consumer optimum while total utility gives the total utility per dollar spent on the last unit.