You Have $50,000 in Your Account

question 144

Multiple Choice

You have $50,000 in your account. Assuming no additional deposits are made and your account earns 8 percent per year, how long will it take for the account to have a balance of $500,000?

• A) 28.83 years
• B) 29.92 years
• C) 50.00 years
• D) 90.00 years

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Definitions:

Index Number

A statistical measure that shows changes in a variable or group of variables over time.

Price Drop

A decrease in the market price of a good or asset, usually driven by changes in demand, supply, or broader economic factors.

Consumer Price Index

An index measuring the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services.

Basket

A term used in finance to refer to a collection of investments, commodities, or currencies held together.