For $10,000, You Can Purchase a Five-Year Annuity That Will

question 67

Multiple Choice

For $10,000, you can purchase a five-year annuity that will pay $2,504.57 per year for five years. The payments occur at the end of each year. Calculate the effective annual interest rate implied by this arrangement.

• A)8 percent
• B)9 percent
• C)10 percent
• D)11 percent

---

Definitions:

Mechanical

Pertaining to the design, operation, or working of machines or machinery; involving moving parts or systems.

SSD

Solid State Drive; a type of non-volatile storage media that uses integrated circuit assemblies to store data.

Loopback Plug

A troubleshooting device that allows port testing.

Port

In computing, a port is a communication endpoint, a physical or virtual connection point used for connecting devices or for data transfer between devices and a computer.