If the Interest Rate Is 15 Percent, What Is the Future

question 137

Multiple Choice

If the interest rate is 15 percent, what is the future value of $10,000 two years from now?

• A)$13,225
• B)$225
• C)$13,000
• D)$7,576

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Definitions:

Coefficient

A numerical value that multiplies a variable in an equation, serving as a measure of some property or characteristic.

Price Elasticity

Refers to how sensitive the quantity demanded of a good is to a change in its price.

Demand Curve

A graph showing the relationship between the price of a good or service and the quantity demanded for a given period.

Price Elasticity

measures how sensitive the quantity demanded or supplied of a good is to a change in its price, indicating the responsiveness of market participants to price changes.