Phil Has $2,000 and He Needs It to Grow to $4,000

question 125

Multiple Choice

Phil has $2,000 and he needs it to grow to $4,000 in 8 years.Assuming he adds no more money to this fund,what rate of return would he need to earn?

• A)6%
• B)7%
• C)8%
• D)9%
• E)10%

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Definitions:

Financial Statements

Formal records of the financial activities and position of a business, person, or other entity, providing an overview of a business or person's financial condition.

Functional Currency

The currency of the primary economic environment in which an entity operates, usually determining how financial statements are presented.

Presentation Currency

The currency in which a company's financial statements are reported, chosen by the company to suit its primary audience's needs.

Recorded

The process of formally documenting transactions and events in the financial records of an entity.