The Future Value of $4000 Invested for 5 Years at Rate

question 259

Multiple Choice

The future value of $4000 invested for 5 years at rate r, compounded annually, is given by S =4000(1=r) ⁵. Find the rate r, as a percent, that gives a future value from $5610 to $6442, inclusive. Round to the nearest whole percent.

• A) \(7 \% \leq \mathrm { r } \leq 10 \%\)
• B) \(7 \% \leq \mathrm { r } \leq 15 \%\)
• C) \(8 \% \leq \mathrm { r } \leq 13 \%\)
• D) \(6 \% \leq \mathrm { r } \leq 9 \%\)

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