What Monthly Compounded Nominal Rate of Return Must Rachel Earn

question 200

Multiple Choice

What monthly compounded nominal rate of return must Rachel earn in her RRSP in order for month-end contributions of $600 to accumulate to $750,000 in 25 years?

• A) 8.04%
• B) 9.65%
• C) 10.09%
• D) 11.48%
• E) 13.50%

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Definitions:

Forged Check

A check that has been illegally modified or created to defraud, including altering the amount, making or endorsing without authorization.

Electronic Funds Transfer System

A system that allows the transfer of money between accounts via electronic signals or computer networks, without the need for physical exchange of money.

Wire Transfers

Electronic methods of moving funds from one bank account to another, either within the same institution or across different institutions.

Point-of-sale Terminals

Electronic devices used in retail locations to process card payments, managing sales and customer transactions directly at the time and place of purchase.