Calculate the Standard Return of an Investment with fiVe Year

question 90

Multiple Choice

Calculate the standard return of an investment with five year returns of 10%, (15%) , 12%, 8% and (5%) .

• A) 7.73%
• B) 8.73%
• C) 9.73%
• D) 10.73%
• E) 11.73%

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Definitions:

Discounts

Reductions from the regular price of goods or services, often used as a strategy to increase demand or reward customers.

Interest Rate

The proportion of a loan that is charged as interest to the borrower, typically expressed as an annual percentage of the loan remaining unpaid.

Lender

An individual, a financial institution, or an entity that provides funds to another with the expectation that the funds will be repaid with interest.

Economic Resource

An asset, commodity, or service that can be used to produce goods and services and thereby contribute to an economy's output.