Solving for Rates What Annual Rate of Return Is Earned

question 10

Multiple Choice

Solving for Rates What annual rate of return is earned on a $5,000 investment when it grows to $7,000 in six years?

• A) 1.40%
• B) 5.45%
• C) 5.77%
• D) 40.00%

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Definitions:

PSAB Standards

The Public Sector Accounting Board (PSAB) standards are guidelines for financial accounting and reporting in the public sector in Canada.

Canadian Governmental Reporting Standards

Standards and guidelines for financial reporting specifically designed for the public sector in Canada.

OSC

The Ontario Securities Commission, a regulatory agency in Ontario, Canada that oversees the capital markets in the province.

CICA Handbook

The official manual for accounting practices in Canada, issued by the Canadian Institute of Chartered Accountants, serving as a reference for accountants on standards and regulations.