You Are Considering Investing in a Bank Account That Pays

question 161

Multiple Choice

You are considering investing in a bank account that pays a nominal annual rate of 7%, compounded monthly.If you invest $3,000 at the end of each month, how many months will it take for your account to grow to $150,000?

• A) 39.60
• B) 44.00
• C) 48.40
• D) 53.24
• E) 58.57

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Definitions:

Diffusion

The process by which an innovation, idea, or trend spreads through a population or social system.

Innovation

The act of introducing something new, such as an idea, method, or device, intended to enhance efficiency, effectiveness, or pleasure.

Relative Advantage

The degree to which an innovation is perceived as better than the idea it supersedes.

Diffusion

The process through which an innovation is communicated over time among the participants in a social system.