You Currently Have $67,000 in an Interest-Earning Account

question 55

Multiple Choice

You currently have $67,000 in an interest-earning account.From this account,you wish to make 10 year-end payments of $8,500 each.What annual rate of return must you make on this account to meet your objective?

• A)4.16%
• B)4.58%
• C)6.42%
• D)7.32%

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Definitions:

Perfect

In legal and financial contexts, to complete the necessary legal steps to secure a lien or claim on property as a security interest.

Collateral

Assets pledged by a borrower to secure a loan or other credit, and subject to seizure in the event of default.

Debtor

An individual or entity that owes money or an obligation to another, the creditor.

Secured Party

A lender or creditor who has an interest, typically through a lien, in the collateral offered by a borrower or debtor to secure a loan or obligation.