Suppose You Put $500 into a Bank Account Today

question 79

Multiple Choice

Suppose you put $500 into a bank account today.Interest is paid annually and the annual interest rate is 5.5 percent.The future value of the $500 is

• A)$637.50 after 5 years and $822.09 after 10 years.
• B)$637.50 after 5 years and $775.00 after 10 years.
• C)$653.48 after 5 years and $854.07 after 10 years.
• D)$688.36 after 5 years and $915.56 after 10 years.

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Definitions:

Public Goods

Goods that are non-excludable and non-rivalrous, meaning they are accessible to all members of society and one person's consumption does not reduce availability to others.

Externalities

Costs or benefits arising from an economic activity that affect third parties who did not choose to incur that cost or benefit.

Economic Outcomes

The results or consequences of particular economic policies, decisions, or activities on the overall economy.

Pollution

Pollution denotes the introduction of harmful substances or products into the environment, leading to adverse effects on life and health.