If Rachel Invests $1700 Today in an Account That Pays

question 14

Multiple Choice

If Rachel invests $1700 today in an account that pays 6 percent interest compounded annually, how long will it take for her to accumulate $6,500 in her account? Use a financial calculator to determine the amount.

• A) 23.02 years
• B) 18.50 years
• C) 20.52 years
• D) 16.89 years
• E) 25.65 years

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Definitions:

Limited Liability

A legal structure where an individual's financial risk is limited to a fixed amount, typically the value of their investment in a company.

Perpetual Existence

A term used to describe a company's ability to continue operating indefinitely unless it decides to terminate.

Sole Proprietorship

A business owned and operated by a single individual, with no distinction between the business and owner legally or financially.

Licensing

The act of granting permission to use intellectual property rights, such as trademarks, patents, or software, under specified conditions.