Assume That $400 Is Deposited at the End of Each

question 116

Multiple Choice

Assume that $400 is deposited at the end of each year in an account in which interest is compounded annually at a rate of 6%.Find the accumulated amount after 8 years.Round to the nearest cent.

• A)$4,358.99
• B)$3,114.11
• C)$3,711.55
• D)$3,958.99
• E)$3,464.11

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Definitions:

Budget Deficit

The situation where a government's expenses exceed its revenues over a specified period of time.

Budget Surplus

A financial situation where a government's income exceeds its expenditures over a given period.

Long-Run Growth

The sustained upward trajectory in the economy's output over time, reflecting long-term increases in productivity and capacity.

Closed Economy

A closed economy is one that does not engage in international trade of goods and services, nor does it allow for capital flows from abroad.