Use the Compound Interest Formula to Compute the Total Amount

question 3

Multiple Choice

Use the compound interest formula to compute the total amount accumulated.
-$3500 for 6 years at 5.5% compounded monthly

• A) $3891.78
• B) $3597.36
• C) $4864.72
• D) $33,667.34

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Definitions:

Supply-Siders

Economics theorists who believe that reducing tax rates and deregulation can stimulate economic growth by increasing supply.

Marginal Tax Rates

The rate at which an additional dollar of income is taxed, indicating the tax impact on your next dollar earned.

Rational Expectations

An economic theory suggesting individuals make predictions about the future based on available information and past experiences in a rational manner.

Stabilization Policy

Government policies aimed at maintaining economic stability through influencing economic growth, reducing unemployment, and controlling inflation.