Jessica Invests $3,000 in an Account That Pays 5% Simple

question 87

Multiple Choice

Jessica invests $3,000 in an account that pays 5% simple interest. How much more could she have earned over a 7-year period if the interest had compounded annually?

• A) $122.20
• B) $129.20
• C) $147.80
• D) $171.30
• E) $221.30

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Definitions:

Demand Equation

A mathematical formula representing the relationship between the quantity demanded of a good and its price, along with other factors like income and price of related goods.

Supply Equation

An algebraic expression representing the relationship between the quantity supplied of a good and its price, along with other factors like the cost of inputs.

Ceiling Prices

Legally established maximum prices that can be charged for goods or services, usually set by government authorities.

Black Markets

Illicit trade environments where goods or services are exchanged illegally or outside the official regulatory frameworks.