How Long Will It Take $3,000 to Reach $5,000 When

question 124

Multiple Choice

How long will it take $3,000 to reach $5,000 when it grows at 7 percent per year?

• A) 7.00 years
• B) 7.55 years
• C) 9.52 years
• D) 10.29 years

---

Definitions:

Consumption

The use of goods and services by households or individuals, forming part of the aggregate demand in an economy.

Induced Consumption

The portion of consumer spending that varies with income. As income increases, consumers will spend more, and as income decreases, consumers will spend less.

Disposable Income

The financial capabilities households have for saving and spending endeavors post income tax deductions.

Consumption

The use of goods and services by households, including the acquisition of goods and services for personal use or ownership.