How Much Would Sophie Have in Her Account at the End

question 34

Multiple Choice

How much would Sophie have in her account at the end of 10 years if she deposit $2,000 into the account today if she earned 8 percent interest and interest is compounded continuously?

• A) $4,317
• B) $4,134
• C) $4,451
• D) $4,521

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Definitions:

MB < MC

A condition where the marginal benefit of producing an additional unit is less than the marginal cost of producing that unit.

Decision Maker

An individual or group responsible for making choices or judgments, particularly in a professional or organizational context.

Total Profit Maximization

The process or strategy of adjusting production and sales to achieve the highest possible profit.

Marginal Benefit

The additional satisfaction or utility received from consuming one more unit of a good or service.