You Are Considering Investing in a Developing-Country Bank Account That

question 7

Multiple Choice

You are considering investing in a developing-country bank account that pays a nominal annual rate of 18%,compounded monthly.If you invest $5,000 at the beginning of each month,how many months will it take for your account to grow to $250,000? Round fractional years up.

• A)23
• B)27
• C)32
• D)38

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Definitions:

Verbal Subtests

Components of intelligence or cognitive tests that assess an individual’s ability to understand, process, and communicate information through language.

Overall IQ

A measure of a person's cognitive abilities in comparison to the general population, usually determined by standardized testing.

Composite Scores

Aggregated scores derived from combining separate scores to provide a summary measure.

Subtest

A component of a larger test, designed to measure a specific aspect of the test taker's knowledge, ability, or skill.