When I Was Considering What to Do with My $8,000

question 75

Multiple Choice

When I was considering what to do with my $8,000 Lottery winnings, my broker suggested I invest half of it in gold, whose value was growing by 12% per year, and the other half in certificates of deposit (CDs) , which were yielding 9% per year compounded every 6 months. Assuming that these rates are sustained, how much will my investment be worth in 7 years Round your answer to the nearest cent. ?

• A)$16,609.89
• B) $16,250.51
• C) $16,154.88
• D) $13,422.30
• E) $16,719.70

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Definitions:

Antitrust Sanctions

Penalties imposed on businesses or individuals for violating antitrust laws, intended to promote fair competition and prevent monopolistic practices.

Price Signalling

A mechanism where the price of a good or service provides information to buyers and sellers which influences their decisions.

Cartels

An association of independent firms or countries that agree to coordinate their production and pricing decisions to monopolize a market and maximize collective profits.

Collusive Agreement

A secret or illegal cooperation or conspiracy, especially between competitors, aimed at deceiving or gaining an unfair advantage in the market.