How Many Periods Would It Take for the Deposit to Grow

question 85

Multiple Choice

How many periods would it take for the deposit to grow to $6,798 if the interest is compounded semiannually?

• A) 17
• B) 19
• C) 21
• D) 25

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Definitions:

Utility Function

A mathematical representation of how different bundles of goods or services rank according to their utility (satisfaction) for an individual or entity.

Consumption

The use of goods and services by households or individuals, typically measured in economic studies to assess economic activity or well-being.

Budget Line

A graphical representation of all possible combinations of two goods that a consumer can afford with a given budget at prevailing prices.

Income

Money received, especially on a regular basis, from work, property, or investments.