What Interest Rate (The Nearest Percent) Must Charlie Earn on a $75,000

question 46

Multiple Choice

What interest rate (the nearest percent) must Charlie earn on a $75,000 investment today so that he will have $190,000 after 12 years?

• A)6%.
• B)7%.
• C)8%.
• D)9%.

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Definitions:

Interest Revenue

Income earned from lending money or investing in interest-bearing financial instruments.

Free Cash Flow

Cash Flows from Operating Activities less Dividends less Capital Expenditures.

Operating Activities

The primary revenue-producing activities of an entity and other activities that are not investing or financing activities.

Capital Expenditures

Large spending by a company on physical assets like property, plant, and equipment, intended to be used for more than one year.