Calculate the Effective Annual Rate, If $100 Grew to $165

question 4

Multiple Choice

Calculate the effective annual rate, if $100 grew to $165 in 11.5 years with quarterly compounding.

• A) 10.94%
• B) 4.38%
• C) 7.87%
• D) 7.22%
• E) 4.45%

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Definitions:

Response

A reaction to a specific stimulus or situation, which can be physiological, emotional, or behavioral.

Unconditioned Response

A natural, automatic reaction to a stimulus that occurs without previous conditioning.

Unlearned Reaction

An instinctual or reflexive response that occurs without prior learning or experience, typically innate and common in human and animal behavior.

Previous Conditioning

The learning or training that an individual has received in the past, which influences their current behavior or reactions.