Find the Interest Rate Needed for an Investment of $6,000

question 186

Multiple Choice

Find the interest rate needed for an investment of $6,000 to grow to an amount of $7,000 in 3 year(s) if interest is compounded continuously. Round your answer to two decimal places. ​

• A) 5.28% per year
• B) 5.35% per year
• C) 5.14% per year
• D) 5.42% per year
• E) 5.21% per year

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Definitions:

Financial Reports

Documents that provide an overview of a company's financial condition, including balance sheets, income statements, and cash flow statements.

Dividends Account

A dividends account is used in accounting to track dividends paid out to shareholders during a specific period; it represents a distribution of a portion of a company's earnings.

Time Period Assumption

An accounting principle that assumes a business's complex and ongoing activities can be divided into specific time periods such as months, quarters, or years for reporting purposes.

Reporting Time Periods

The specific intervals for which financial reports are prepared, such as quarterly or annually, to provide stakeholders with timely financial information.