Choose the One Alternative That Best Completes the Statement or Answers

question 481

Multiple Choice

Choose the one alternative that best completes the statement or answers the question.
-Larry has $2,000 to invest and needs $2,500 in 13 years. What annual rate of return will he need to get in order to accomplish his goal? (Round your answer to two decimals.)

• A) 3.45%
• B) 1.45%
• C) 2.45%
• D) 1.72%

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Definitions:

Subsector

A specific part of a larger sector or industry, categorized by similar business activities or products.

Capital Market

A financial market in which long-term debt (over a year) or equity-backed securities are bought and sold.

Federal Reserve Bank

The central banking system of the United States, responsible for setting monetary policy, issuing currency, and overseeing the nation's banking system.

Commercial Banks

Financial institutions that provide a wide range of banking services to individuals and businesses, including accepting deposits, lending money, and offering checking and savings account services.