If you deposit $900 into an account for two years and the interest rate is 4%, how much do you have at the end of the two years?
a. $972.00
b. $973.44
c. $974.19
d. None of the above is correct.
b
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Which of the following is an example of a capital good?
A. A metal-stamping machine used to produce cars sold to an automaker B. A new CD player sold to a teenager C. A new CD player sold to an automaker for installation in a car D. A new car sold to a family
The wage rate is the price of a unit of labor. What happens to the quantity of labor supplied if the wage rate increases?
A. It increases. B. It decreases. C. It does not change. D. Uncertain-economic theory has no answer to this question.
A product that is produced in 2015 and not sold until 2016 will be counted in the GDP for
A. both 2015 and 2016. B. neither 2015 nor 2016. C. 2015 D. 2016
Joe's Taco Hut can purchase a delivery truck for $20,000 and Joe estimates it will generate a net income (after taxes, maintenance and operating costs) of $4,000 per year. His other option is to go to work for someone else earning net income of $3,000 per year. He should:
A. not purchase the truck if the real interest rate is greater than 1 percent. B. purchase the truck if the real interest rate is less than 5 percent. C. purchase the truck if the real interest rate is greater than 5 percent. D. purchase the truck if the real interest rate is less than 15 percent.