How Many Years (And Months) Will It Take $4 Million

question 82

Multiple Choice

How many years (and months) will it take $4 million to grow to $7 million with an annual interest rate of 12 percent?

• A)4 years and 1.92 month
• B)4 years and 11.28 months
• C)5 years and 6.54 months
• D)5 years and 10.86 months

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Definitions:

Price Floors

A government- or authority-imposed minimum price that sellers must charge for a good or service, essentially preventing prices from falling below this set level.

Ceiling Prices

Maximum prices set by the government on certain goods and services to prevent excessive pricing during shortages or inflationary periods.

Rationing Function

The ability of market prices to distribute scarce goods and services among consumers based on willingness and ability to pay.

Marginal Utility

Marginal utility is the additional satisfaction or benefit gained from consuming one more unit of a good or service, which tends to decrease as more units are consumed.