What Annual Rate of Return Is Earned on a $5,000

question 42

Multiple Choice

What annual rate of return is earned on a $5,000 investment when it grows to $7,000 in six years?

• A) 1.40 percent
• B) 5.45 percent
• C) 5.77 percent
• D) 40.00 percent

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Definitions:

Epinephrine

A hormone and neurotransmitter also known as adrenaline; it increases heart rate, constricts blood vessels, and dilates air passages.

Norepinephrine

A neurotransmitter and hormone involved in the body's fight or flight response, affecting blood pressure, heart rate, and sugar metabolism.

Sympathetic

Pertaining to the part of the autonomic nervous system that typically prepares the body for intense physical activity and is often referred to as the fight-or-flight response.

Parasympathetic

Pertaining to the division of the autonomic nervous system that conserves energy as it slows the heart rate, increases intestinal and gland activity, and relaxes sphincter muscles.