If You Are Able to Earn a 6% Rate of Return

question 29

Multiple Choice

If you are able to earn a 6% rate of return, what amount would you need to invest to have $6,500 one year from now?

• A) $6,011.79
• B) $6,132.10
• C) $5,817.50
• D) $6,190.47

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Definitions:

Products

Goods or services that are created through a process of production and can be offered in a market to satisfy a need or want.

Factor Inputs

The resources used in the production of goods and services, such as labor, land, and capital.

Long Run

A period in economics where all factors of production and costs are variable, allowing all inputs to be adjusted.

Short Run

A period in which at least one factor of production is fixed, limiting the ability of a business to expand its output.