Consider a $2,000 Deposit Earning 6 Percent Interest Per Year

question 36

Multiple Choice

Consider a $2,000 deposit earning 6 percent interest per year for five years. How much total interest is earned on the original deposit (excluding interest earned on interest) ?

• A) $60.00
• B) $76.45
• C) $600.00
• D) $676.45

---

Definitions:

Law Of Demand

A fundamental economic principle stating that, all else being equal, as the price of a good or service decreases, consumer demand for it will increase, and vice versa.

Price

The quantity of currency projected, called for, or dispensed as remuneration for something.

Quantity Demanded

The total amount of a good or service that consumers are willing and able to purchase at a given price in a specific period.

Maximum Wage Law

Legislation that sets an upper limit on the amount of money that can be earned by employees in a specific period.