Use the Compound Interest Formula to Determine the Accumulated Balance

question 112

Multiple Choice

Use the compound interest formula to determine the accumulated balance after the stated period. Assume that interest iscompounded annually.
-$16,000 is invested at an APR of 2.3% for 17 years.

• A)$23,021.31
• B)$22,256.00
• C)$21,888.00
• D)$23,550.80

---

Definitions:

Government Failure

A situation where government intervention in the economy causes inefficiencies or leads to an allocation of resources worse than the free market.

Competitive Markets

Markets where multiple sellers and buyers interact under the principles of supply and demand to determine prices and output without significant restrictions or monopolies.

Property Rights

Legal rights to possess, use, and dispose of assets such as land, buildings, or intellectual property.

Efficient Allocation

Efficient allocation involves the distribution of resources in a manner that maximizes productivity and utility, often considered optimal in economic theory.