Jenna deposits 1,000 in a bank at an interest rate of 6 ...

[mspears3]

Jenna deposits 1,000 in a bank at an interest rate of 6 compounded annually. What is the future value of the sum deposited after: a) two years. b) four years.
 
  What will be an ideal response?

Question 2

The price chosen by a monopolist:
 
  A) maximizes social surplus.
  B) maximizes consumer surplus.
  C) is dependent on the production of other firms.
  D) is independent of the production of other firms.

[mrphibs]

Answer to Question 1

a) The future value after two years = (1.06 )2  1,000 = 1,123.60.
b) The future value after four years = (1.06 )4  1,000 = 1,262.48.

Answer to Question 2

D