Jeff Desires to Accumulate $13,603

question 99

Multiple Choice

Jeff desires to accumulate $13,603.83 by December 1, 2018. To accumulate that sum, he will make six equal semiannual deposits of $2,000, beginning on June 1, 2016, into a fund that earns interest compounded semiannually. What annual rate of interest must the fund provide to yield the desired sum?

• A) 5%
• B) 6%
• C) 10%
• D) 12%

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Definitions:

Low Cost

The strategy or condition of offering products or services at a lower price than competitors, aimed at attracting consumers or achieving higher sales volumes.

Rapid Response

The ability to react quickly and effectively to unforeseen circumstances or emergencies.

Modular Design

A design approach that subdivides a system into smaller parts or modules that can be independently created and then used in different systems to drive multiple functionalities.

Tangible Products

Physical items that can be seen, touched, and owned, as opposed to services or digital goods.