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:

Environmental Uncertainty

The unpredictability that an organization faces due to external factors beyond its control, such as economic conditions or technological changes.

Dynamic Environment

A situation or place characterized by constant change, activity, or progress, which can affect individuals, businesses, or ecosystems.

Resource Dependence

A theory that describes how external resources of an organization can influence its behavior and strategies.

Environmental Uncertainty

The lack of predictability and stability in an environment, making it difficult for organizations to forecast future conditions.