What Is the Value of $10,000 Invested for 1 Year

question 8

Multiple Choice

What is the value of $10,000 invested for 1 year at 8% compounded continuously?

• A) $10,800
• B) $10,833
• C) $10,824
• D) $11,268

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Definitions:

Indifference Curves

Graphical representations used in microeconomics to show different combinations of two goods between which a consumer is indifferent, signifying equal levels of utility.

Bliss Point

The optimal quantity of consumption where any further increase or decrease would lead to lower satisfaction or utility.

Absolute Values

A mathematical operation that measures the distance of a number from zero on the number line, disregarding direction.

Indifference Curve

A graphical representation showing different combinations of two goods that provide an individual with the same level of satisfaction.