An Investment Has Grown from $100

question 6

Multiple Choice

An investment has grown from $100.00 to $130.00 or by 30% over four years. What annual increase gives a 30% increase over four years?

• A) 7.50%
• B) 6.30%
• C) 6.78%
• D) 7.24%

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Definitions:

P(B / A)

The probability of event B occurring given that event A has already occurred, often used in conditional probability and Bayesian statistics.

Union

In mathematics, especially in set theory, the union of a collection of sets is the set that contains all elements that are a member of any set within the collection.

Random Events

Outcomes or occurrences that cannot be predicted with certainty due to the random nature of the underlying process.

Probability Space

The mathematical framework for probability in which a sample space, together with a probability measure, models the outcome of a random experiment.