Ethan Has $160,000 to Invest Today at an Annual Interest

question 38

Multiple Choice

Ethan has $160,000 to invest today at an annual interest rate of 4%. Approximately how many years will it take before the investment grows to $324,000?

• A) 18 years.
• B) 20 years.
• C) 16 years.
• D) 11 years.

---

Definitions:

Asymmetric Information

A situation where one party in a transaction has more or better information than the other, potentially leading to an imbalance in decision-making or outcomes.

Fee-For-Pay

A pricing model where services are provided and charged based on specific transactions or uses rather than a subscription or blanket fee.

Out-Of-Pocket Costs

Expenses for medical care that aren't reimbursed by insurance, including deductibles, co-payments, and coinsurance.

Outpatient Facilities

Medical centers or clinics where patients receive treatment without being admitted overnight, including diagnostic services and minor surgical procedures.