Solve the Problem. -How Long Must $4100 Be in a Bank at 8

question 26

Multiple Choice

Solve the problem.
-How long must $4100 be in a bank at 8% compounded annually to become $10,324.50? (Round to the nearest year.)

• A) 14 yr
• B) 11 yr
• C) 12 yr
• D) 13 yr

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Definitions:

Excise Tax

An excise tax is a tax charged on specific goods and services, such as gasoline, cigarettes, and alcohol, typically to discourage their use or generate revenue.

Benefits Principle

A taxation theory that suggests taxes should be levied according to the benefits received by the taxpayer from government services.

Ability-To-Pay Principle

This principle suggests that individuals should be taxed based on their ability to pay, regardless of the benefits they receive.

Equity Principle

A concept in finance that emphasizes fair distribution of wealth and assets, ensuring that financial transactions are conducted fairly and equitably.