What's the Future Value of $1,300 After 5 Years If

question 144

Multiple Choice

What's the future value of $1,300 after 5 years if the appropriate interest rate is 6%,compounded monthly?

• A) $1,385.27
• B) $1,753.51
• C) $1,841.18
• D) $1,928.86
• E) $1,683.36

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Definitions:

Entire Incomes

The total earnings received by an individual or household from various sources, including wages, salaries, and investments.

Cobb-Douglas Utility

A form of utility function that represents preferences with a particular functional form, often used in economics to model production and utility with inputs or goods raised to constant powers.

Quasilinear Utility

A utility function where the utility is linear in one argument, typically representing money, allowing for the analysis of changes in wealth without the utility of wealth itself changing.

Consumption Increase

A rise in the amount of goods and services consumed by households or the economy over a period.