If the Interest Rate Is 15 Percent, What Is the Future

question 184

Multiple Choice

If the interest rate is 15 percent, what is the future value of $10,000 two years from now?

• A)$13,225
• B)$225
• C)$13,000
• D)$7,576

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Definitions:

New Stocks

Shares that have been recently issued to the public by a company, often through an initial public offering (IPO).

Bankruptcy

A legal proceeding involving a person or business that is unable to repay outstanding debts, leading to asset liquidation or debt reorganization.

Corporate Tax Rate

Corporate tax rate is the percentage of a corporation's profits that is paid to the government as tax.

Debt Ratio

The portion of assets financed by debt, showing the extent to which a company relies on borrowed funds for its operations.