What Interest Rate Is Required to Accumulate $6,802

question 12

Multiple Choice

What interest rate is required to accumulate $6,802.50 in four years from an investment of $5,000?

• A)5%
• B)8%
• C)10%
• D)12%
• E)15%

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Definitions:

Express Trust

A trust created either while the settlor is alive or by will.

Created

Brought into existence; originated or produced something new.

Family Waqf

An endowment made by a Muslim for religious, educational, or charitable purposes, typically for the benefit of family members.

Trust System

A legal arrangement in which trustors entrust their assets to trustees for the benefit of beneficiaries according to the terms specified in the trust agreement.