What Annual Rate of Return Is Earned on a $13,000

question 38

Multiple Choice

What annual rate of return is earned on a $13,000 investment made in year 2 when it grows to $17,000 by the end of year 7?

• A) 10.64 percent
• B) 4.28 percent
• C) 8.04 percent
• D) 5.51 percent

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Definitions:

REBT

Rational Emotive Behavior Therapy (REBT) is a form of cognitive-behavioral therapy developed by Albert Ellis that emphasizes identifying irrational beliefs, challenging these beliefs, and ultimately changing behavioral and emotional responses.

ABC Model

A cognitive behavioral therapy framework that describes the relationship between an activating event (A), beliefs (B), and consequences (C), showing how changing one's beliefs can help manage emotional reactions and behaviors.

Irrational Beliefs

Faulty, unrealistic thoughts or assumptions that can lead to emotional distress and unhealthy behavior.

Socratic Questioning

A technique used in therapy and education that involves asking open-ended questions to stimulate critical thinking and uncover underlying beliefs or assumptions.