If $900 Is Deposited in a Savings Account That Pays

question 42

Multiple Choice

If $900 is deposited in a savings account that pays interest at a rate of % per year compounded continuously, find the balance after 7 years.

• A)$1,418.56
• B)$581.08
• C)$1,369.77
• D)$1,393.95
• E)$3,484.87

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Definitions:

Marginal Utility

The change in total utility a person receives from consuming one additional unit of a good or service.

Total Utility

The total satisfaction received from consuming a particular quantity of a good or service.

Average Utility

The total utility received from a certain amount of goods or services divided by the number of goods or services consumed.

Diminishing Marginal Utility

The principle that as a person consumes more of a good, the additional satisfaction gained from consuming an additional unit decreases.