Find the Rate of Interest Required to Achieve the Conditions

question 62

Multiple Choice

Find the rate of interest required to achieve the conditions set forth.
-If Jay bought a lot for $8,000 and sold it 15 years later for $24,000, what was her percentage rate of return on this investment if it was compounded annually?

• A) 8.7104%
• B) 9.6825%
• C) 7.5990%
• D) 3.7995%

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Definitions:

Elasticity of Supply

The responsiveness of the quantity supplied of a good to a change in its price.

Farm Product

Goods that are produced by farming activities, such as crops and livestock, intended for consumption or further processing.

Farmer's Market

A physical retail marketplace intended for farmers to sell directly to consumers fresh produce and local goods.

Price Elasticity of Demand

The degree to which the quantity demanded of a good changes in response to a change in its price, holding everything else constant.