Jennifer Invests $5100 in a Saving Certificate with an Interest

question 56

Multiple Choice

Jennifer invests $5100 in a saving certificate with an interest rate of 4.25% per year compounded monthly. How long will it take for her investment to grow to $13000? Round to the nearest tenth.

• A) 1.9 years
• B) 4.3 years
• C) 215.6 years
• D) 22.1 years
• E) 211.5 years

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Definitions:

Utility Function

A mathematical representation of a consumer’s preference, showing the amount of satisfaction or utility derived from consuming various bundles of goods and services.

Perfect Complements

Pair of goods that are consumed together in fixed proportions because the consumption of one good enhances the consumption of the other.

Indifference Curves

Graphical representations of different bundles of goods between which a consumer is indifferent, meaning the consumer has no preference for one combination over the other as both provide equal utility.

Formula

A concise way of expressing information symbolically, as in a mathematical or chemical formula.