Compound Interest Is Computed Quarterly on $700 for Seven Years

question 77

Multiple Choice

Compound interest is computed quarterly on $700 for seven years at 12 percent annual interest.The future value table is used by multiplying the $700 by which factor?

• A)28 periods at 3 percent
• B)7 periods at 3 percent
• C)7 periods at 12 percent
• D)28 periods at 7 percent

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Definitions:

Production Possibilities

A concept in economics that describes the various combinations of goods and services that can be produced in an economy given its available resources and technology.

Joint Consumption

The characteristic of a good or service that can be consumed by more than one person at the same time without reducing its availability to others.

Production Possibilities Curve

A graphical representation showing the maximum number of goods or services that can be produced with a fixed amount of resources.

Resources

Inputs or factors used in the production of goods and services, including labor, capital, land, and technology.