Suppose That You Had Deposited $100 in a Bank Account

question 130

Multiple Choice

Suppose that you had deposited $100 in a bank account for each of the last 5 years.What annual interest rate is attached to this account if there is now (at the end of the fifth year) $758.92 in the account?

• A)10%
• B)16%
• C)19%
• D)21%
• E)23%

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Definitions:

Canada Revenue Agency

The federal agency responsible for administering tax laws for the Canadian government and for most provinces and territories.

Taxable Income

The amount of income used to calculate how much the individual or company owes in taxes to the government.

Total Taxes

The cumulative amount of state, federal, and other government taxes charged on a company's or individual's income and activities.

Deductible

An amount subtracted from an insurance claim payment.