At What Interest Rate Would Investing $1000 in a Bank

question 31

Multiple Choice

At what interest rate would investing $1000 in a bank leave you as well off as receiving $1078 in 12 months' time?

• A)5%
• B)78%
• C)10%
• D)7.8%

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Definitions:

Shareholders

Individuals or entities that own shares in a corporation, giving them certain rights and interests in the corporation's operations and profits.

Derivative Suit

A suit to enforce a corporate right of action brought on behalf of a corporation by one or more of its shareholders. Also called derivative action.

Corporation

A legal entity that is separate from its owners, providing limited liability protection, with the capability to own assets, incur liabilities, and enter into contracts.

CEO

The Chief Executive Officer, responsible for the overall management and decision-making of a company.