Annuity Interest Rate What Annual Interest Rate Would You Need

question 93

Multiple Choice

Annuity Interest Rate What annual interest rate would you need to earn if you wanted a $500 per month contribution to grow to $27,050 in 4 years?

• A) 2.37%
• B) 5.77%
• C) 6.00%
• D) 13.53%

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Definitions:

Restrictive Indorsement

An endorsement on a negotiable instrument that limits the way the instrument can be used, such as by specifying a particular payee.

Fiduciary Duty

An obligation to act in the best interest of another party, for instance, the duty a trustee has towards the beneficiaries of the trust.

Indorsee

The person to whom a negotiable instrument (like a check or promissory note) is endorsed or transferred.

Indorser

A person who signs a negotiable instrument, such as a check, over to another party, transferring ownership.