$$\text { Use the compound interest formulas } A = P \left( 1 + \frac { r } { n } \right) ^ { n t } \text { and } A = P e ^ { r t } \text { to solve. }$$

question 85

Multiple Choice

$$\text { Use the compound interest formulas } A = P \left( 1 + \frac { r } { n } \right) ^ { n t } \text { and } A = P e ^ { r t } \text { to solve. }$$
-Suppose that you have $3000 to invest. Which investment yields the greater return over 9 years: 5.4% compounded monthly or 5.5% compounded quarterly?

• A)$3000 invested at 5.4% compounded monthly over 9 years yields the greater return.
• B)Both investment plans yield the same return.
• C)$3000 invested at 5.5% compounded quarterly over 9 years yields the greater return.

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Definitions:

Candy Bars

Pre-packaged bars made primarily of chocolate and often combined with other ingredients like nuts, caramel, or nougat.

Marginal Utility

The change in satisfaction or utility an individual gains from consuming one additional unit of a good or service.

Consumer Equilibrium

In marginal utility theory, the combination of goods purchased that maximizes total utility by applying the utility-maximizing rule.

Prices

The amount of money required to purchase a good or service, often determined by the forces of supply and demand in the market.