You Deposit $3,000 into an N-Year Certificate of Deposit That

question 199

Multiple Choice

You deposit $3,000 into an N-year certificate of deposit that pays 4.5 percent annual interest,and at the end of the N years you have $4,082.59.What is the number of years,N?

• A)4
• B)5
• C)6
• D)7

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Definitions:

Outputs

The goods or services produced by a company or an economy over a certain period of time.

Increasing Opportunity Costs

A principle stating that as the production of a good increases, the opportunity cost of producing an additional unit of this good also increases.

Bowed-Out Shape

Describes a concave production possibilities frontier that reflects increasing opportunity costs as production of one good is increased.

Attainable And Unattainable

Describes whether a certain state or outcome can be achieved with the available resources (attainable) or not (unattainable), often used in the context of production and economics.