If you left $2,500 on deposit with a bank promising to pay you a 6 percent compound annual rate of interest, then after 50 years your deposit would be worth approximately:
A. $2,800
B. $46,050
C. $250,750
D. $18,420
Answer: B
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A resident of the U.S. just purchased a share of stock on the London stock market. As far as the U.S. balance of payments this purchase will
A) have no influence on the balance of payments since stock is not a good or service. B) be entered as a unilateral transfer in the current account. C) be entered in the capital account. D) require special drawing rights.
Economists usually use the term "recession" to refer to: a. any slowdown in the growth of real GDP
b. zero real GDP growth. c. two or more consecutive quarters of declining real GDP. d. a reduction in nominal GDP lasting more than six months.
Government spending on transfer payment programs such as public assistance and agriculture are governed by the principles of
a. efficiency and accountability b. nonexclusivity and nonrivalry c. private and social d. equity and stability e. taxation and subsidies
Approximately how long would it take for real GDP to double if it grew at a constant annual rate of 2 percent?
A. Approximately 2 years. B. Approximately 36 years. C. Approximately 72 years. D. Approximately 20 years.