If Alvin Invests $5,500 Today in a Savings Account, the Money

question 43

Multiple Choice

If Alvin invests $5,500 today in a savings account, the money will grow to $8,500 at the end of Year 4. Assuming that the interest is paid once per year, the effective annual rate of the investment is _____.

• A) 10.82%
• B) 11.50%
• C) 12.20%
• D) 12.85%
• E) 13.57%

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Definitions:

Stethoscope

A medical instrument used by healthcare professionals to listen to internal body sounds, such as heart and lung sounds, for diagnostic purposes.

Blood Pressure Device

An instrument used to measure blood pressure, consisting typically of an inflatable cuff, a measuring unit, and sometimes a stethoscope.

Recalibrate

The process of re-adjusting, re-assessing, or altering a method, process, or machine to ensure accuracy and effectiveness.

Blood Pressure Clinic

A specialized clinic focused on monitoring and managing the blood pressure of patients, helping to prevent hypertension related complications.