Your Financial Advisor Tells You That If You Earn the Historical

question 14

Multiple Choice

Your financial advisor tells you that if you earn the historical rate of return on a certain mutual fund,then in three years your $20,000 will grow to $23,152.50.What rate of interest does your financial advisor expect you to earn?

• A)5 percent
• B)6 percent
• C)7 percent
• D)8 percent

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Definitions:

Retirement

The period of life after leaving one’s job and ceasing to work, often marked by receiving pensions or other retirement savings.

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An infection or inflammation of the middle ear, commonly seen in children, which may cause ear pain, fever, and hearing problems.

Congenital Rubella

A viral infection present at birth caused by the mother's infection with the rubella virus during pregnancy, leading to various health issues in the infant.

Diabetes Mellitus

A chronic condition characterized by high levels of glucose in the blood due to insulin production or function issues.