The Table Below Gives the Value of an Investment

question 1

Multiple Choice

The table below gives the value of an investment of P dollars after 2 years in an account whose annual percentage yield is 100r%. The value of a $10,000 investment after 2 years can be modeled by Find and interpret when the annual interest rate is 4.3%.

• A) $8.30 per percentage point; it represents how much money a $10,000 investment would earn if the interest rate increased by one percent.
• B) $1,060.00 per percentage point; it represents how much money a $10,000 investment would earn if the interest rate increased by one percent.
• C) $1,060.00 per percentage point; it represents the rate of increase in value of $10,000 investment as the interest rate increases by one percent.
• D) $208.60 per percentage point; it represents the rate of increase in value of $10,000 investment as the interest rate increases by one percent.
• E) $104.30 per percentage point; it represents how much money in the investment is due to the interest rate.

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Definitions:

Quota Rent

A financial benefit obtained by importers who receive a license under a quota system which limits the quantity of goods that can be imported.

Supply Price

The minimum price at which a seller is willing to sell a good or service, often determined by the cost of production and market conditions.

Demand Price

The highest price a consumer is willing to pay for a good or service, influenced by personal value perception and financial capability.

Equilibrium Quantity

The amount of products or services available and sought after at the balance price.