Bill Is Considering Investing $450 at the End of Every

question 24

Multiple Choice

Bill is considering investing $450 at the end of every month in a fixed income instrument. He will receive $27,000 at the end of four years. If interest is compounded monthly, what is the effective annual rate of return earned on the investment?

• A)11.6%
• B)22.3%
• C)15.1%
• D)11.1%
• E)13.6%

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Definitions:

Adolescent Years

A developmental stage that occurs between childhood and adulthood, typically ranging from ages 13 to 19, characterized by significant physical, psychological, and social changes.

Dating

Social activities involved in seeking romantic or sexual partners, often leading to a relationship.

Adolescents' Attachments

The emotional bonds and relationships adolescents form, which play a crucial role in their social and emotional development.

Adjustment

The process of adapting or becoming accustomed to new conditions, situations, or environments.