Adam Plans to Invest $1500 Today in a Mutual Fund

question 31

Multiple Choice

Adam plans to invest $1500 today in a mutual fund. If he earns 12 percent interest compounded monthly, to what amount will his investment grow in 20 years? Use a financial calculator to make the calculation.

• A) $17,289
• B) $15,897
• C) $16,339
• D) $12,450
• E) $18,546

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Definitions:

John Maynard Keynes

An economist from Britain whose work reshaped both macroeconomic theory and the economic policymaking of governments.

Motives

The underlying reasons or goals that drive individuals or entities to act in a certain way, influencing economic decisions and behaviors.

Transactions Demand

Transactions demand refers to the amount of money or liquidity that is needed by an economy to facilitate day-to-day transactions.

State Charters

State charters refer to authorization or licenses granted by state governments allowing entities, such as corporations or banks, to operate within a specific state.