Robin Invested $10,000 in an Account That Pays 5% Simple

question 192

Multiple Choice

Robin invested $10,000 in an account that pays 5% simple interest. How much more could she have earned over a 40-year period if the interest had compounded annually?

• A) $38,207.16
• B) $38,414.14
• C) $40,399.89
• D) $48,414.14
• E) $50,399.89

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Definitions:

Supply Curve

A graphical representation showing the relationship between the price of a good and the quantity of the good that suppliers are willing and able to sell.

Purely Competitive

Characterizes a market structure where many firms sell identical products, entry and exit are easy, and no single firm can influence the market price.

Labor Market

The marketplace in which individuals offer their labor for employment and employers seek to fill positions with the most suitable candidates.

Human Capital

Human capital refers to the skills, knowledge, and experience possessed by an individual or population, viewed in terms of their value or cost to an organization or country.