For $10,000, You Can Purchase a Five-Year Annuity That Will

question 29

Multiple Choice

For $10,000, you can purchase a five-year annuity that will pay $2,358.65 per year for five years. The payments occur at the beginning of each year. Calculate the effective annual interest rate implied by this arrangement.

• A)8 percent
• B)9 percent
• C)10 percent
• D)11 percent

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Definitions:

Gene Effect

The influence that a gene has on the phenotype or traits of an organism, including physical characteristics and behaviors.

Codominant

In genetics, a condition where two different alleles for a genetic trait are expressed simultaneously without one being recessive to the other.

Incomplete Dominance

A genetic phenomenon where the phenotype of a heterozygote is intermediate between the phenotypes of the two homozygotes.

Recessive

A genetic trait that is expressed only when two copies of the gene carrying the trait are present, as opposed to a dominant trait where only one copy is necessary.