If I Invest $20,000 at 2

question 7

Multiple Choice

If I invest $20,000 at 2.5% today,how long will it take to reach a minimum of $50,000 compounded semi-annually?

• A)5 years.
• B)19 years.
• C)9 and ½ years.
• D)17 years.

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Definitions:

Benefit Surpluses

The extra utility or satisfaction gained by consumers when the price they are willing to pay for a good or service exceeds the market price.

Willingness To Pay

The maximum amount an individual is prepared to offer for a good or service, reflecting the value they place on it.

Supply Curve

A graphical representation that shows the relationship between the price of a good or service and the quantity of that good or service that a supplier is willing and able to supply to the market.

Consumer Surplus

The difference between what consumers are willing to pay for a good or service and what they actually pay, representing the benefit to consumers.