Find the Simple Interest on a $2,000 Investment Made for 5

question 82

Multiple Choice

Find the simple interest on a $2,000 investment made for 5 years at an interest rate of 5% per year. What is the future value ?

• A)The simple interest is $500, the future value is $2,500.
• B) The simple interest is $480, the future value is $2,500.
• C) The simple interest is $530, the future value is $2,480.
• D) The simple interest is $480, the future value is $2,480.
• E) The simple interest is $490, the future value is $2,490.

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Definitions:

Market Demand

The total demand for a product or service within a market, summing up the individual demands of all potential buyers.

Purely Competitive Industry

An industry characterized by many buyers and sellers, free entry and exit, and a product that is homogeneous, leading to the establishments of a market price for all participants.

Industry Elastic

The responsiveness of the quantity demanded or supplied of goods or services in an industry to changes in price.

Differentiated Product

A product that is distinct from its competitors because of features, branding, quality, or other attributes that make it unique in the eyes of consumers.