At an Interest Rate of 6%,how Much Will Need to Be

question 53

Multiple Choice

At an interest rate of 6%,how much will need to be invested today to have $10,000 in 5 years?

• A) $5,000
• B) $7,473
• C) $10,000
• D) $13,382

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Definitions:

Expected Rate of Return

The expected rate of return is the anticipated percentage gain or loss that an investment is projected to generate, based on historical or estimated future performance.

Interest Rate

The percentage at which interest is paid by a borrower for the use of money they borrow from a lender, typically expressed as an annual percentage rate.

Research and Development

The investigative activities a business conducts to improve existing products and procedures or to lead to the development of new products and procedures.

Expected-Rate-of-Return Curve

A graphical representation that illustrates the relationship between the expected return of an investment and its associated risk.