Solve the Problem

question 95

Multiple Choice

Solve the problem. Round to the nearest cent as needed.
-An actuary for a pension fund need to have $14.6 million grow to $22 million in 6 years.What interest rate compounded annually does he need for this investment to growth as specified.Round your answer to the nearest hundredth of a percent.

• A)0.07%
• B)7%
• C)7.7%
• D)7.07%

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Definitions:

Negligence

The failure to take proper care in doing something, leading to damage or injury to another.

Severe Injuries

Substantial physical harm or damage to a person's body that requires medical attention and may lead to long-term or permanent disability.

Misrepresentations

False or misleading statements that can render a contract void or voidable if relied upon by the aggrieved party.

Principal

The primary party or individual involved in a contract or agreement, often responsible for the obligations and benefits of the contract.