What Annual Rate of Return Is Earned on a $200

question 147

Multiple Choice

What annual rate of return is earned on a $200 investment when it grows to $850 in 10 years?

• A) 3.25 percent
• B) 4.25 percent
• C) 13.47 percent
• D) 15.57 percent

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Definitions:

Grapefruits

A large, round citrus fruit with a sour to semi-sweet flavor, commonly known for its beneficial nutrients and use in diets.

Giffen Good

A product that paradoxically experiences an increase in demand as its price increases, violating the basic law of demand, often due to the lack of close substitutes.

Inferior Good

A type of good for which demand decreases when consumer income rises, contrasting with normal goods, for which the opposite is observed.

Utility Function

A mathematical representation of how consumer preference over a set of goods and services translates into choices given constraints, like income.