Suppose you put $500 into a bank account today. Interest is paid annually and the annual interest rate is 3%. The future value of the $500 in 5 years to the nearest cent is
a. $575.00
b. $578.81
c. $579.64
d. None of the above is correct.
c
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In the money market, if the quantity of money supplied exceeds the quantity of money demanded, the nominal interest rate will ________ and the prices of assets will ________
A) fall; increase B) rise; increase C) fall; decrease D) rise; decrease E) fall; not change
The component of aggregate expenditure that is not like other components because, in general, it is directly neutral to macroeconomic changes is:
A. consumption spending. B. investment spending. C. government spending. D. net export spending.
Which of the following statements is correct?
a. For most producers, the average total cost curve never crosses the marginal cost curve. b. The average fixed cost curve must eventually rise. c. The average total cost curve first rises, then falls with increased output. d. The marginal cost curve eventually rises with the quantity of output.
In which of the following cases would entry and exit cease?
A. P > long-run ATC. B. P < long-run ATC. C. P = long-run ATC. D. P > short-run ATC.