The Value of an Investment Doubles Every 32 Months

question 315

Multiple Choice

The value of an investment doubles every 32 months. If the investment starts with $3700 how much money is in the investment after 3 months (rounded to the nearest hundredth) ?

• A) $3700.00
• B) $3781.02
• C) $7400.00
• D) $3948.42
• E) $4661.71

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Definitions:

Industrialized Countries

Nations with significant industrial activity, high levels of income per capita, and widespread infrastructure.

Paasche Index

Amount of money at current-year prices that an individual requires to purchase a current bundle of goods and services divided by the cost of purchasing the same bundle in a base year.

Nominal Income

The amount of money received in a specified period before adjusting for inflation.

Revealed Preference

An economic concept suggesting that the preferences of consumers can be observed by their purchasing habits and choices.