If You Deposit $250 Each Quarter in a Bank Account

question 100

Multiple Choice

If you deposit $250 each quarter in a bank account that pays interest at 16% compounded quarterly, how much will you have at the end of five years?

• A)$3397.58
• B)$1354.08
• C)$7444.53
• D)$6074.25

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Definitions:

Aggregate Demand

The entire market's craving for goods and services within an economic territory, calculated at a fixed price level and within a set timeline.

Expansionary Gap

A situation in an economy where the real GDP is higher than the potential GDP, often leading to inflation.

Active Approach

A strategy, especially in investing or management, where decisions are made based on hands-on involvement and regular assessment of conditions.

SRAS Curve

Short-Run Aggregate Supply Curve represents the relationship between the total supply of goods and services produced by a country and the price level in the short term, holding wages and input prices constant.