Suppose you place $500 into a savings account that will pay you 6% interest per year. What will be the future value of the savings account in 15 years?
The future value will be $1,198.28.
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The wealth effect helps explain what feature in the aggregate demand and aggregate supply model?
An increase in aggregate demand would be most likely caused by a decrease in:
A. the tax rates on household income. B. the wealth of consumers. C. consumer confidence. D. expected future prices.
In July 2008, the Federal Communications Commission approved the merger of satellite radio providers XM Satellite and Sirius Satellite Radio, establishing a single satellite radio company in America
Under the terms of the deal, the companies agreed not to raise prices for the next three years. Why would the FTC require prices not to increase for three years? A) Compared to competition, monopolies are always worse for consumers. B) Compared to competition, monopolies restrict output and charge higher prices. C) Compared to competition, monopolies increase prices and output. D) Compared to competition, monopolies restrict output and charge lower prices.
According to the classical dichotomy, which of the following is not influenced by monetary factors?
a. unemployment b. the price level c. nominal interest rates d. All of the above are correct.