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.

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Definitions:

Adrenal Cortex

Outer portion of adrenal gland; secretes the hormones aldosterone and cortisol.

Pancreas

An organ in vertebrates, including humans, involved in the digestion process and insulin production.

Endocrine System

Organ system that coordinates responses among cells of an animal body by means of hormones.

Nervous

Related to the nervous system, involving nerve cells and tissues in transmitting impulses between parts of the body.