Carlita Invested $10,000 for 25 Years

question 63

Multiple Choice

Carlita invested $10,000 for 25 years. For the first 15 years she earned 15% compounded semi-annually. For the last 10 years she earned 9.6% compounded monthly. What was her effective rate of return over the 25 years?

• A) 13.32%
• B) 10.03%
• C) 15.56%
• D) 12.30%
• E) 14.51%

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Definitions:

Primary Appraisal

The initial evaluation process where an individual assesses the meaning of a given situation for their well-being.

Secondary Appraisal

The evaluation of one's ability to cope with the consequences of a stressful event.

Physiological Response

The body's automatic reactions to internal or external stimuli, including changes in heart rate, breathing, and hormone levels.

Downward Comparison

A social comparison strategy where individuals compare themselves to others who are less well off in order to feel better about their own situation.