Given an 8 Percent Interest Rate, Compute the Year 7

question 34

Multiple Choice

Given an 8 percent interest rate, compute the year 7 future value if deposits of $1,500 and $2,500 are made in years 2 and 3, respectively, and a withdrawal of $2,000 is made in year 5.

• A) $1,909.42
• B) $3,272.41
• C) $3,433.60
• D) $5,656.34

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Definitions:

Political Incentive

A reason or motivation based on political goals or outcomes, influencing the actions of politicians or governments.

New Deal

A series of programs, public work projects, financial reforms, and regulations enacted by President Franklin D. Roosevelt in the United States during the 1930s to help recover from the Great Depression.

Great Depression

A severe worldwide economic depression that took place mostly during the 1930s, beginning in the United States.

Economic Policy

Economic policy refers to the actions that governments take in the economic field covering taxation, government budgets, money supply, interest rates, and labor market regulations.