What Annual Rate of Return Is Earned on a $2,000

question 111

Multiple Choice

What annual rate of return is earned on a $2,000 investment made in year 3 when it grows to $3,000 by the end of year 6?

• A) 6.99 percent
• B) 14.47 percent
• C) 24.00 percent
• D) 50.00 percent

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Definitions:

Time Limit

A fixed or set period within which something must be started, completed, or achieved.

Income Inequality

The imbalanced sharing of income among participants in an economy, affecting individuals and households differently.

Minimum Wages

The minimum wage allowed by law for workers.

Unskilled Labor

Workforce with no specific skills or qualifications, typically performing simple tasks that require minimal training.