What Annual Rate of Return Is Earned on a $13,000

question 38

Multiple Choice

What annual rate of return is earned on a $13,000 investment made in year 2 when it grows to $17,000 by the end of year 7?

• A) 10.64 percent
• B) 4.28 percent
• C) 8.04 percent
• D) 5.51 percent

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Definitions:

Normal Aging

The physiological and psychological changes that naturally occur in the human body over time, not associated with disease or severe disability.

Senility

A derogatory term once used to describe the deterioration of cognitive function associated with old age, now more appropriately referred to as dementia or Alzheimer's disease.

Initiative Versus Guilt

Erikson's third stage of psychosocial development, where children begin to assert control and power over their environment through directed play and other activities.

Cognitive Development

The progression of learning and development of intelligence, conscious thought, and problem-solving ability that occurs from infancy through adulthood.