You Invest $10,000 in an Investment Earning 10

question 117

Multiple Choice

You invest $10,000 in an investment earning 10.57% interest compounded annually.You also withdraw $200 per year.How many years will it take to double your initial investment to $20,000?

• A)5 years
• B)6 years
• C)7 years
• D)8 years

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Definitions:

Socially Optimal Quantity

Socially Optimal Quantity is the level of production or consumption of a good or service that results in the maximum possible economic efficiency and welfare, taking into account all social costs and benefits.

External Benefit

A positive effect or advantage that results from a product or service's use, extending beyond the direct buyer or consumer to others not involved in the transaction.

Output

The cumulative production of goods and services by an economy over a given time frame.

External Cost

Costs of a transaction or activity that affect people other than those directly involved in the transaction, often not reflected in the market prices.