You Have $12,500 You Want to Invest for the Next

question 42

Multiple Choice

You have $12,500 you want to invest for the next 30 years.You are offered an investment plan that will pay you 7 percent per year for the next 10 years and 9.5 percent per year for the last 20 years.How much will you have at the end of the 45 years?

• A)$101,516.38
• B)$119,874.49
• C)$151,018.51
• D)$190,253.91
• E)$209,092.54

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Definitions:

Demand Inelastic

A situation where the demand for a product does not change significantly with a change in price.

Price Elasticity

A measure of how much the quantity demanded of a good or service changes in response to a change in its price.

Monopolist

A market participant who is the sole supplier of a particular good or service, possessing significant market power and able to influence price and market conditions.

No Change

A term indicating that a variable or condition remains constant or unaltered in a given context.