You Have Been Depositing Money at the End of Each

question 126

Multiple Choice

You have been depositing money at the end of each year into an account drawing 8% interest.What is the balance in the account at the end of year four if you deposited the following amounts?

• A) $1,622
• B) $2,207
• C) $2,384
• D) $2,687

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Definitions:

Consumer Surplus

The variance between what consumers are prepared and capable of spending for a product or service compared to the actual amount they end up paying.

Marginal Utility

The additional satisfaction or utility gained by consuming one more unit of a good or service.

Consumer Surplus

The consumer surplus is the gap between what consumers are ready and capable of paying for a good or service and what they actually spend on it.

Marginal Utility

The augmented satisfaction or value someone derives from the consumption of an extra unit of a good or service.