What Interest Rate (The Nearest Percent) Must Charlie Earn on a $226,000

question 147

Multiple Choice

What interest rate (the nearest percent) must Charlie earn on a $226,000 investment today so that he will have $570,000 after 12 years?

• A) 6%.
• B) 7%.
• C) 8%.
• D) 9%.

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Definitions:

Automobile Insurance

A type of insurance policy that provides financial protection against physical damage and/or bodily injury resulting from traffic collisions and against liability that could also arise.

Premium

An amount paid periodically to the insurer by the insured for covering his risk or the cost above the nominal value of something.

Temporary Insurance

Short-term coverage designed to provide protection for a limited period, often while awaiting the implementation of permanent insurance.

Binder Agreement

A temporary insurance contract providing coverage until a formal policy is issued.