Twelve Years Ago, Jake Invested $2,000

question 146

Multiple Choice

Twelve years ago, Jake invested $2,000. Six years ago, Tami invested $4,000. Today, both Jake's and Tami's investments are each worth $9,700. Assume that both Jake and Tami continue to earn
Their respective rates of return. Which one of the following statements is correct concerning these
Investments?

• A) Three years from today, Jake's investment will be worth more than Tami's.
• B) One year ago, Tami's investment was worth more than Jake's.
• C) Jake has earned a higher rate of return than Tami.
• D) Tami has earned an average annual interest rate of 15.91%.
• E) Jake has earned an average annual interest rate of 15.47%.

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Definitions:

Price Of Cigarettes

The cost that consumers pay to purchase cigarettes, which can vary widely based on taxes, manufacturing costs, and availability.

Supply Curve

A graph showing the relationship between the price of a good and the quantity of the good that suppliers are willing and able to produce at that price.

Equilibrium Level

The state in which market supply and demand balance each other, resulting in stable prices and quantities.

Quantity Demanded

The total amount of a good or service that consumers are willing and able to purchase at a given price in a specified time period.