Suppose You Invest $1,000 into a Mutual Fund That Is

question 37

Multiple Choice

Suppose you invest $1,000 into a mutual fund that is expected to earn a rate of return of 10%.The amount of money will you have in 10 years is closest to which of the following? The amount you will have in 50 years is closest to which of the following?

• A) $386; $9
• B) $2,594; $45,259
• C) $2,594; $117,391
• D) $3,138; $ 1,311,892

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Definitions:

Egalitarian Society

A community or society in which social equality in terms of wealth, status, and power is emphasized and maintained.

Saving

The act of not spending a portion of income and setting it aside for future use, often in a deposit account or as an investment.

Deficits

The situation that arises when a government, company, or individual spends more money than it receives in income or revenue over a specified period.

Living Standards

The level of wealth, comfort, material goods, and necessities available to a certain socioeconomic class or geographic area.