The Solution to This Problem Requires Time Value of Money

question 48

Multiple Choice

The solution to this problem requires time value of money calculations. Reference to Tables 9-1 through 9-4 in the text is necessary to complete the calculations. If Shidan has $5,000 to invest and wants to have $10,000 at the end of 9 years, what compounded interest rate must she get on her money assume annual compounding?

• A) 5%
• B) 7%
• C) 8%
• D) 6%

---

Definitions:

Sodium

A chemical element (Na) that is a soft, silver-white, highly reactive metal belonging to the alkali metal group, essential for humans and animals in small amounts.

Acid-Base Balance

The mechanism by which the body maintains its normal pH level, ensuring optimal functioning of cells and organs.

Fluid Balance

The maintenance of the correct amount of fluid in the body, crucial for ensuring that all cells and organs function effectively.

Clear-Liquid Diet

A diet consisting only of clear liquids like water, broth, and certain juices, often recommended before medical tests or surgery.