What Annual Interest Rate Would You Need to Earn If

question 71

Multiple Choice

What annual interest rate would you need to earn if you wanted a $500 per month contribution to grow to $27,050 in four years?

• A) 2.37 percent
• B) 5.77 percent
• C) 6.00 percent
• D) 13.53 percent

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Definitions:

Regression

In statistics, a method for modeling the relationships between one or more independent variables and a dependent variable; in psychology, a defense mechanism leading to the temporary or long-term reversion of the ego to an earlier developmental stage rather than handling unacceptable impulses in a more adult way.

Reduction

The process of simplifying or breaking down complex entities into simpler components, often used in scientific and mathematical problem-solving.

Nostalgia

A sentimental longing or wistful affection for the past, typically for a period or place with happy personal associations.

Melancholia

A severe form of depression characterized by persistent feelings of deep sadness, hopelessness, and lack of interest or pleasure in activities.