What Annual Rate of Return Is Earned on a $13,000

question 52

Multiple Choice

What annual rate of return is earned on a $13,000 investment made in year 2 when it grows to $17,000 by the end of year 7?

• A) 10.64%
• B) 4.28%
• C) 8.04%
• D) 5.51%

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Definitions:

Control Chart

A tool used in statistical quality control to monitor a process and determine whether it is in a state of statistical control.

Compressive Strength

The capacity of a material or structure to withstand loads tending to reduce size, measured by the maximum stress that a material can sustain under compression.

Injection Molding

The process of producing components by forcing molten material into a mold.

Standard Deviation

A quantification of the extent to which a group of numbers deviates from their average.