Suppose That You Invested $100 in a Bank Account That

question 108

Multiple Choice

Suppose that you invested $100 in a bank account that earned an annual rate of return of 10%.How much would you have in that bank account at the end of 10 years?

• A)$259.37
• B)$238.55
• C)$293.74
• D)$214.46
• E)$279.23

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Definitions:

Consumer Surplus

The variance between the total price consumers intend to pay for a service or good and what they really pay.

Demand Curve

A graph showing the relationship between the price of a good and the quantity of that good that consumers are willing to purchase at various prices.

Willingness to Pay

The maximum amount a consumer is ready to spend on a good or service.

Consumer Surplus

The discrepancy between the amount consumers are prepared to pay for a product or service and the price they actually spend.