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:

Preventive Care

Medical services and practices that focus on disease prevention and health maintenance rather than treatment of symptoms or conditions.

Portable

Capable of being easily carried or moved, especially in reference to electronic devices or equipment.

Cafeteria Plan

A type of employee benefit plan that allows workers to choose from a variety of pre-tax benefit options to design a benefits package that best suits their needs.