Calculate the Future Amounts $( A )$ You Would Have If $1,500 Were Invested at 9% for If

question 143

Short Answer

Calculate the future amounts $( A )$ you would have if $1,500 were invested at 9% for 7 years with simple interest and if it were invested with annual compounding. What is the difference between the two to the nearest cent, and does compound interest yield more or less than simple interest? at simple interest, $ __________; with annual compounding, $ __________; difference, $ __________; thus compounding gives: __________ (Answer more or less )

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Definitions:

Diminishing Marginal Product

The principle that as additional units of a variable input are added to a fixed input, the additional output produced from each new unit decreases.

Marginal Cost Curve

A graphical representation showing how the cost to produce one additional unit of a product changes as production volume increases.

Economies of Scale

The financial advantages achieved by companies through their operational size, with unit costs usually dropping as the scale of production increases.

Average-Fixed-Cost Curve

A graphical representation showing how the fixed cost per unit changes with changes in the volume of production.