Danny Invests $124 090 in a Fund and Expects to Receive

question 45

Multiple Choice

Danny invests $124 090 in a fund and expects to receive $10 000 per year for the next 30 years.What is the approximate interest rate provided on the annuity?

• A)8 percent
• B)6 percent
• C)9 percent
• D)7 percent

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Definitions:

Stock Split

The division of a company's existing stock into multiple shares to boost market liquidity without affecting shareholders' equity.

Book Value

The net value of a company's assets minus its liabilities, as recorded on the balance sheet.

Market Value

The price at this moment for buying or selling an asset or service in the market.

Stock Dividend

A stock dividend is a payment made in the form of additional shares instead of cash, reflecting a company's desire to reward shareholders without reducing cash on hand.