You Are Considering an Investment in a Third World Bank

question 124

Multiple Choice

You are considering an investment in a Third World bank account that pays a nominal annual rate of 18%, compounded monthly. If you invest $5,000 at the beginning of each month, how many months would it take for your account to grow to $250,000? Round fractional months up.

• A) 23
• B) 27
• C) 32
• D) 38

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Definitions:

Snowball Sampling

A non-probability sampling technique where existing study subjects recruit future subjects from among their acquaintances.

Nonprobability Sampling

A sampling technique where the samples are gathered in a process that does not give all the individuals in the population equal chances of being selected.

Lotteries

Games of chance where winners are selected by drawing lots, often used as a means of raising funds.

Stratified Random Sampling

A sampling technique that divides the population into distinct subgroups, or strata, and randomly selects samples from each stratum.