If a Bank Deposit Will Double in Value in 18

question 122

Multiple Choice

If a bank deposit will double in value in 18 years, the rule of 72 implies that the interest rate on the deposit must equal is approximately:

• A)3 percent.
• B)4 percent.
• C)6 percent.
• D)8 percent.

---

Definitions:

Equilibrium Quantity

The amount of goods or services supplied that is equal to the amount demanded at the market equilibrium price.

Equilibrium Price

The price at which the quantity of a good or service demanded equals the quantity supplied, leading to market equilibrium.

Equilibrium Quantity

The quantity of goods or services supplied is equal to the quantity demanded at the market price.

Consumer Surplus

The difference between the highest price a consumer is willing to pay for a good or service and the actual market price they pay.