Eloise Deposits $250 into an Account and One Year Later

question 57

Multiple Choice

Eloise deposits $250 into an account and one year later has $272.50. What interest rate was paid on Eloise's deposit?

• A)8 percent
• B)9 percent
• C)10 percent
• D)None of the above is correct.

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Definitions:

Marginal Social Benefit

The additional benefit received by society from producing one more unit of a good or service.

Marginal Social Cost

The overall expense to society of producing one additional unit of a good or service, including both private costs and any externalities.

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Environmental contamination resulting from the extraction and processing of coal, including air and water pollution.

Catalytic Converters

Devices incorporated in the exhaust system of vehicles that reduce harmful emissions by converting pollutants into less harmful substances.