Solve the Problem. -Assume That a Savings Account Earns Interest at the Rate

question 131

Multiple Choice

Solve the problem.
-Assume that a savings account earns interest at the rate of 2% compounded monthly. If this account contains $1000 now, how many months will it take for this amount to double if no withdrawals are made?

• A) 417 months
• B) 12 months
• C) 450 months
• D) 408 months

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Definitions:

Discriminates

The act of making distinctions or treating someone differently based on characteristics other than individual merit.

Cost Efficient

A condition or process that achieves the intended result with minimal wasted resources or effort.

Productive

The efficiency with which inputs (such as labor and capital) are converted into outputs (goods and services).

Large Income

Substantial earnings or revenue, typically considerably higher than the average income, affording a high standard of living.