Lance Has $3,500 but Needs $7,000 to Purchase a New

question 61

Multiple Choice

Lance has $3,500 but needs $7,000 to purchase a new golf cart.If he can invest his money at a rate of 12% per year,approximately how many years will it take the money in Lance's account to grow to $7,000? Use the Rule of 72 to determine your answer. Note: The bicycle's price may have changed by the time Lance's account reaches a value of $7,000.

• A)2 years
• B)4 years
• C)6 years
• D)8 years

---

Definitions:

Economic Profit

The difference between total revenue and total costs, including both explicit and implicit costs, indicating the overall financial gain of a business.

Own Capital

Refers to the funds or resources that a business owner personally invests in their enterprise, as opposed to borrowed capital.

Fixed Factor

An input to the production process that cannot be easily increased or decreased in the short term.

Industry Entry

Refers to the process by which new competitors join an existing market, often affecting competition and market dynamics.