If You Are Able to Earn an 8% Rate of Return

question 29

Multiple Choice

If you are able to earn an 8% rate of return, what amount would you need to invest to have $30,000 one year from now?

• A)$27,747
• B)$27,778
• C)$27,273
• D)$29,700

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Definitions:

Trade Surpluses

An economic condition that occurs when a country's exports exceed its imports over a certain period of time, indicating a positive balance of trade.

Inflation Rates

The rate at which the general level of prices for goods and services is rising, and, subsequently, purchasing power is falling.

Foreign Exchange Gain

A financial benefit resulting from changes in exchange rates, enhancing the value of foreign currency assets upon conversion.

Year-End

The conclusion of a fiscal year, marking the cutoff for financial reporting and the beginning of financial statement preparation for that period.