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:

Profitable

A financial state or condition of generating revenue that exceeds the costs and expenses associated with operating.

Efficient Markets Hypothesis

A theory suggesting that all known information is already reflected in stock prices, meaning that stocks always trade at their fair value.

Stock Price

The current price at which a share of a company is bought or sold in the market.

Financial Disclosures

Information provided by a company to its stakeholders about its financial health, performance, and risks, typically found in annual reports and financial statements.