(Advanced Analysis) Kara Has $2,000 to Invest Today That She

question 61

Multiple Choice

(Advanced analysis) Kara has $2,000 to invest today that she wants to grow to $3,000 in five years.What annually compounded rate of interest would she have to earn to reach her goal?

• A)4.6 percent
• B)6.5 percent
• C)8.4 percent
• D)9.3 percent

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Definitions:

Transferred Check

A check that has been signed over by the original recipient to a new recipient, allowing the latter to cash or deposit the check.

Intermediary

An entity that acts as the middleman between two parties in a transaction, helping to facilitate communication and the exchange of goods, services, or information.

Depositary Banks

Financial institutions that hold securities, such as stocks and bonds, in electronic or physical form for safekeeping and facilitate transactions for these securities.

Payment

A transaction or arrangement in which money is exchanged for goods or services.