You Are Considering an Investment in a Third World Bank

question 144

Multiple Choice

You are considering an investment in a Third World bank account that pays a nominal annual rate of 18%,compounded monthly.If you invest $5,000 at the beginning of each month,how many months would it take for your account to grow to $250,000? Round fractional months up.

• A)23
• B)27
• C)32
• D)38
• E)44

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Definitions:

Poison Pills

A strategic approach adopted by corporations to fend off hostile takeover attempts by rendering themselves less appealing to the interested buyer.

Strategic Fits

The degree to which the strategies and operations of two or more businesses or units complement and reinforce each other.

Acquisitions

The process of obtaining control of another company by purchasing or exchanging shares.

Incremental Value

The additional or extra value generated by making a particular business decision or taking a specific action, compared to not doing so.