An investor deposits $400 into a bank account that earns an annual interest rate of 8%. Based on this information, how much interest will he earn during the second year alone?
A. $25.60
B. $64
C. $34.56
D. $32
Answer: C
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Would a relatively high P/E ratio lead us to conclude that a stock is overvalued or undervalued? Why or why not?
Unlike an internally held public debt, an externally held public debt
a. cannot pass the debt burden on to future generations b. can pass the debt burden on to future generations c. expires upon maturity d. cannot be reduced because foreigners hold the debt e. causes crowding out
Which of the following assumptions is(are) NOT made in consumer behavior theory?
A. Consumers have complete information. B. Consumers can rank all bundles of goods. C. Consumers can measure the utility they get from all bundles of goods. D. both a and b E. None of the above are assumptions made in consumer behavior theory.
Government intervention to alter market structure or prevent abuse of market power is the basic purpose of
A. Antitrust policy. B. Government taxes. C. Social demand. D. Merit goods.