How Long Will It Take $4,000 to Reach $4,500 When

question 16

Multiple Choice

How long will it take $4,000 to reach $4,500 when it grows at 8 percent per year?

• A) 1.12 years
• B) 1.48 years
• C) 1.53 years
• D) 9.00 years

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Definitions:

Fair Value

An estimation of the market value of an asset or liability based on the current market prices or valuations of similar assets and liabilities.

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The ability of an expense to be subtracted from gross income to determine the taxable income, thus reducing the amount of tax owed.

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