If You Initially Deposit $10,000 and Contribute $1,000 Per Month

question 99

Multiple Choice

If you initially deposit $10,000 and contribute $1,000 per month for five years to a plan in order to accumulate $100,000, what rate of return will be required to make this happen?

• A) 10.05%
• B) 11.05%
• C) 12.05%
• D) 13.05%
• E) 14.05%

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Definitions:

Lead Time

The amount of time that elapses between the initiation and completion of a process.

Economic Production Quantity

A model that determines the optimal quantity of a product to produce, minimizing total holding and setup costs.

Setup Time

The time required to prepare a machine or process for production.

Lot Size

It denotes the quantity of units produced or ordered in a single batch, influenced by considerations like cost and demand.