Use the Formula $A = p \left( 1 + \frac { r } { n } \right) ^ { n t }$

question 22

Multiple Choice

Use the formula $A = p \left( 1 + \frac { r } { n } \right) ^ { n t }$ to find the amount for the investment. $13,400 for 4 years at 1.5% compounded semiannually.

• A) $14,225.48
• B) $14,225.36
• C) $14,225.60
• D) $14,225.54
• E) $14,225.42

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Definitions:

Equilibrium Output

The level of output at which the quantity of goods produced equals the quantity of goods consumed in an economy, with no external pressures to change.

Short-Run Aggregate Supply Curve

A graphical representation showing the positive relationship between the total production of goods and services (aggregate supply) and the price level in the short term.

Expansionary Gap

A situation where the real GDP is higher than the potential GDP, often leading to inflationary pressures as demand outstrips supply.

Price Level

The collective median of current prices for goods and services in the economy.