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:

Net Exports

The value of a country's total exports minus its total imports; a positive number indicates a trade surplus, and a negative number indicates a trade deficit.

Consumption

The use of goods and services by households.

National Income

The total value of all goods and services produced by a country's economy over a specific period, including foreign income.

Disposable Income

The amount of money an individual or household has to spend or save after income taxes are deducted.