Assuming an Interest Rate of 6%,if You Invest a Lump

question 50

Multiple Choice

Assuming an interest rate of 6%,if you invest a lump sum of $6,500 now,the balance of your investment in 7 years will be closest to

• A)$45,500.
• B)$11,642.
• C)$36,283.
• D)$9,776.

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Definitions:

Division of Labor

The separation of the work required to produce a product into a number of different tasks that are performed by different workers; specialization of workers.

Command Systems

Economic systems where production, investment, prices, and incomes are determined centrally by a government.

Pure Capitalism

An economic system characterized by private ownership of the means of production, minimal government intervention, and the free market determining prices and distribution of goods.

Communism

A political and economic ideology advocating for a classless society in which the means of production are owned collectively.