You Just Won $25,000 and Deposited Your Winnings into an Account

question 18

Multiple Choice

You just won $25,000 and deposited your winnings into an account that pays 6.2 percent interest, compounded annually. How long will you have to wait until your winnings are worth $50,000?

• A) 11.52 years
• B) 12.00 years
• C) 12.29 years
• D) 12.67 years
• E) 12.90 years

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Definitions:

Bushel

A volume measure used in agriculture, particularly in the United States, equivalent to 8 dry gallons or about 35.24 liters.

Consumption

The use of goods and services by households or individuals for personal needs or to satisfy their utility.

Utility Function

A mathematical representation in economics that captures a consumer's preference ranking for different bundles of goods, showing the level of satisfaction or utility derived from each.

Leisure

Time free from the demands of work or duty, where one can rest or engage in activities of choice.