Phil Has $2,000 and He Needs It to Grow to $4,000

question 125

Multiple Choice

Phil has $2,000 and he needs it to grow to $4,000 in 8 years.Assuming he adds no more money to this fund,what rate of return would he need to earn?

• A)6%
• B)7%
• C)8%
• D)9%
• E)10%

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Definitions:

Margin of Error

A measure of the range of values below and above the sample statistic in a confidence interval within which the true population parameter is expected to lie.

Sample Mean

The mean of a set of samples, obtained by adding all the values together and then dividing by the total count of observations.

Weekdays

The days of the week typically considered as working days, usually Monday through Friday, excluding the weekend.

Sampling Distribution

A statistical function that describes all the possible values and likelihoods that a statistic can take within a given range.