You Have Accumulated $8,000 Toward the Down Payment on a Piece

question 21

Multiple Choice

You have accumulated $8,000 toward the down payment on a piece of lake front property in rural Minnesota.You wish to accumulate $12,000 for the down payment in four years.If you choose not to contribute more new funds to your down payment fund,what rate of return must your fund earn to reach your objective in the specified time? Assume that your investment fund compounds annually.

• A)10.67% per year
• B)50.00% per year
• C)12.50% per year
• D)There is not enough information to answer this question.

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Definitions:

Emile Durkheim

A French sociologist best known for his foundational work on social theory, who explored the complex relationship between individuals and society.

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A 19th-century philosopher, economist, and political theorist known for his critical analysis of capitalism and his influence on the development of socialist thought.

Common Method

A widely accepted or utilized technique or approach within a specific field or discipline for achieving certain objectives or results.

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The action of propelling oneself into the air through the forceful extension of the legs, often used in sports, exercise, or as a means of bypassing obstacles.