What Rate of Interest Was Earned for $2,000 to Accumulate

question 102

Multiple Choice

What rate of interest was earned for $2,000 to accumulate to be $81,990 after 20 years?

• A)4%
• B)5%
• C)6%
• D)7%
• E)8%

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Definitions:

Accounting

The systematic process of recording, measuring, and communicating financial information.

Partnership Assets

Assets that are owned by a partnership, representing the investment and resources used in the operation of the partnership.

Managing Partner

An individual tasked with overseeing the operations of a partnership or firm, often having the authority to make managerial decisions.

Profit Statements

Financial statements that summarize the revenues, costs, and expenses incurred during a specific period of time, showing the company's net earnings or losses.