What's the Future Value of $1,500 After 5 Years If

question 150

Multiple Choice

What's the future value of $1,500 after 5 years if the appropriate interest rate is 6%, compounded semiannually?

• A) $1,819
• B) $1,915
• C) $2,016
• D) $2,117
• E) $2,223

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Definitions:

Inelastic Demand

A situation where the demand for a product does not significantly change with a change in price.

Good Substitutes

Products or services that can be used in place of each other, with consumers willing to switch from one to the other if the price or quality changes.

Necessity

Goods or services considered essential for basic human survival and well-being, such as food, water, and shelter.

Income Percentage

A measure or fraction of personal or household income, often used in context to describe expenditure, saving, or taxation ratios.