Assume That You Will Require $1000 in Four Years' Time

question 44

Multiple Choice

Assume that you will require $1000 in four years' time.Suppose that you can afford to deposit only $186.29 at the end of each year,the first deposit to be made in one year's time.What interest rate would you require to reach your target if the bank compounds annually?

• A)15% p.a.
• B)18.5% p.a.
• C)20% p.a.
• D)22.5% p.a.