What Annual Interest Rate Would You Need to Earn If

question 71

Multiple Choice

What annual interest rate would you need to earn if you wanted a $500 per month contribution to grow to $27,050 in four years?

• A) 2.37 percent
• B) 5.77 percent
• C) 6.00 percent
• D) 13.53 percent

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Definitions:

Competitive Industry

An industry characterized by many firms, differentiated products, and free entry and exit, leading to intense competition.

Elastic Demand

A situation where the demand for a product or service significantly changes in response to price changes.

Close Substitutes

Products or services that can serve the same purpose or function, making them easily replaceable with one another in consumption or use.

Pollution Laws

Legislation that sets limits on the emission of pollutants into the environment, aiming to protect air and water quality.