If the Current Rate of Interest Is 8% APR,then the Future

question 20

Multiple Choice

If the current rate of interest is 8% APR,then the future value of an investment that pays $500 every two years and lasts 20 years is closest to:

• A) $10,979
• B) $10,661
• C) $22,881
• D) $20,000

---

Definitions:

Tax

A compulsory financial charge or levy imposed by a government on individuals or entities to fund public expenditures.

Good

A tangible item that is produced or manufactured for sale to consumers in the market.

Market Equilibrium

A condition or state where the supply of a good matches its demand, leading to a stable market price for the good.

Good

A tangible product or item that satisfies some human desire or need, often available for sale in the market.