Solving for Rates What Annual Rate of Return Is Earned

question 69

Multiple Choice

Solving for Rates What annual rate of return is earned on a $2,000 investment made in year 3 when it grows to $3,000 by the end of year six?

• A) 6.99%
• B) 14.47%
• C) 24.00%
• D) 50.00%

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Definitions:

Political System

The structure of government, including institutions and processes, that governs a society.

Population Growth

The increase in the number of individuals in a population, influenced by birth rates, mortality rates, and migration patterns.

Demographic Transition Model

is a theory that describes the changes in birth rates, death rates, and population growth as a society progresses from a pre-industrial to an industrialized economic system.