Solving for Rates What Annual Rate of Return Is Earned

question 125

Multiple Choice

Solving for Rates What annual rate of return is earned on a $10,000 investment when it grows to $15,000 in ten years?

• A) 1.50%
• B) 3.97%
• C) 4.14%
• D) 5.00%

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Definitions:

Non-Hispanic

A term used to refer to individuals or populations who do not identify with Hispanic or Latino ethnic groups.

Entitlements

Programs for which funding is mandatory and guaranteed by law to those who meet eligibility criteria, such as Social Security and Medicare.

Eligible Person

An individual who meets specific criteria or requirements, making them qualified to receive certain benefits, rights, or services.

Pay-As-You-Go System

A financial policy where expenses must be funded out of current revenues without resorting to borrowing or debt.