What Annual Interest Rate Would You Need to Earn If

question 21

Multiple Choice

What annual interest rate would you need to earn if you wanted a $200 per month contribution to grow to $14,700 in five years?

• A) 6.47 percent
• B) 7.76 percent
• C) 8.01 percent
• D) 14.70 percent

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Definitions:

Resource Use

Involves the allocation and utilization of resources such as capital, labor, and materials efficiently in the production of goods and services.

Resource Demand

The need or desire for specific resources in order to produce goods or services within an economy.

Product Market

The market where end products or services are made available to consumers, businesses, and governmental bodies.

Determining Factors

Key elements that significantly influence the outcome or condition of a specific situation or context.