You Have Been Saving Toward the Purchase of a New

question 71

Multiple Choice

You have been saving toward the purchase of a new mountain bike.Five years ago,you placed $600 in a bank account,and you have since earned an annual rate of return of 12 percent.How much do you now have in your account?

• A)$1,057.41
• B)$1,293.71
• C)$978.70
• D)$1,138.70

Discern the concept of rational decision-making and its determinants.

Understand the role and impact of sunk costs in the context of marginal analysis.

Recognize various behavioral biases and their effects on economic decisions.

Distinguish between explicit and implicit costs in decision-making.