A Company Is Setting Aside $21,354 Today, and Wishes to Have

question 63

Short Answer

A company is setting aside $21,354 today, and wishes to have $30,000 at the end of three years for a down payment on a piece of property. What interest rate must the company earn?

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Definitions:

Somatic Symptom

A type of illness that causes physical symptoms, including pain, without a clear physical cause.

Dissociative

Pertaining to a psychological state in which a person experiences a disconnection and lack of continuity between thoughts, memories, surroundings, actions, and identity.

Acute Stress

A short-term and immediate response to a demanding or threatening situation.

Illness Anxiety

An excessive worry about having a serious illness, despite having few or no symptoms, previously known as hypochondriasis.