You Deposit $200 in an Account That Doubles in 10

question 22

Multiple Choice

You deposit $200 in an account that doubles in 10 years. How many years will it take the account to be reduced to its original value if it loses 25 percent per year?

• A) 2.00 years
• B) 2.41 years
• C) 3.11 years
• D) 4.00 years

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Definitions:

Free Trade

An economic policy that allows imports and exports between countries with minimal or no tariffs, quotas, subsidies, or prohibitions to facilitate trade.

Trade-offs

The balancing of factors or alternatives where the improvement of one results in the compromise or decline of another.

Scarcity

The fundamental economic problem of having seemingly unlimited human wants in a world of limited resources.

Poverty

A condition where individuals or communities lack the financial resources and essentials for a minimum standard of living.