How Much Would Be in Your Savings Account in 12

question 39

Multiple Choice

How much would be in your savings account in 12 years if you deposited $1,500 today? Assume the bank pays 5 percent per year.

• A) $2,387.12
• B) $2,491.03
• C) $2,693.78
• D) $2,771.09

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Definitions:

Price Change

A variation in the cost of goods and services in a market, influenced by factors such as supply and demand, inflation, or governmental policy.

Charitable Giving

The act of giving money, goods, or time to the unfortunate, either directly or by means of a charitable trust or other worthy cause.

Income Effect

The change in consumption resulting from a change in real income, which can stem from increases or decreases in wages, or from price changes affecting the purchasing power of income.

Substitution Effect

The change in consumption resulting from a change in the price of a product, leading consumers to substitute that product with another.