If You Receive $10 000 Back as Principal and Interest

question 65

Multiple Choice

If you receive $10 000 back as principal and interest at the end of two years for an initial investment of $9127 at the start of the term,what is the yield on your investment?

• A) 4.37% per annum
• B) 4.78% per annum
• C) 8.73% per annum
• D) 9.57% per annum

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Definitions:

Vesicles

Small cavities in volcanic rocks that are formed by gas bubbles trapped during the solidification of the rock.

Shield Volcanoes

Large, broad volcanoes with gentle slopes, built by the eruption of low-viscosity lava that can flow long distances.

Fluid Lava

Magma that has reached the surface through a volcanic eruption and flows easily due to its low viscosity.

Viscous Lava

Lava that is thick and slow-moving due to its high silica content, which increases its viscosity.