If It Were Evaluated with an Interest Rate of 0

question 79

Multiple Choice

If it were evaluated with an interest rate of 0 percent,a 10-year regular annuity would have a present value of $3,755.50.If the future (compounded) value of this annuity,evaluated at Year 10,is $5,440.22,what effective annual interest rate must the analyst be using to find the future value?

• A) 7%
• B) 8%
• C) 9%
• D) 10%
• E) 11%

---

Definitions:

Encourages Ethical

Promoting or fostering a set of moral principles or values that govern an individual's or group's behavior.

Organizational Culture

The set of shared values, beliefs, and practices that influence the way an organization's members interact and work.

Appropriate System

A system that is suitable or fitting for a particular purpose, context, or need, often characterized by its effectiveness and efficiency.

Organizational Culture

The shared values, beliefs, and practices that shape the social and psychological environment of an organization.