If You Put $250 into an Account with a 4

question 160

Multiple Choice

If you put $250 into an account with a 4 percent interest rate,how many years would you have to wait to have $370.06?

• A) 10
• B) 14
• C) 17
• D) 20

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Definitions:

Internal Rate

Often refers to the internal rate of return (IRR), a metric used to evaluate the profitability of potential investments.

Investment Project

A project or activity requiring capital expenditure with the expectation of generating financial returns over time.

Discount Factor

A multiplier used in discounting to calculate the present value of future cash flows or earnings.

Working Capital

The difference between a company's current assets and current liabilities, indicating the liquidity and short-term financial health of the business.