At What Annual Rate Would $500 Grow to $1,948 in 12

question 49

Essay

At what annual rate would $500 grow to $1,948 in 12 years? (Note-Solve as a Present Value problem.)
(a)12.0 percent
(b)13.0 percent
(c)12.5 percent
(d)11.0 percent

Grasp the concept, advantages, and disadvantages of sole proprietorships.

Comprehend the role and types of equity financing in businesses.

Analyze the impact, advantages, and disadvantages of family businesses in the economy.

Understand the life cycle of entrepreneurial firms and associated management challenges.

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Definitions:

Intangible Asset

A non-physical asset having value due to its intellectual or proprietary characteristics, such as patents, trademarks, and goodwill.

Amortized

The gradual reduction of a debt through regular payments that cover both interest and principal over time.

Finite Life

The limited time span during which an asset is expected to be useful in the operations of a business, after which it becomes obsolete or non-functional.

Amortized

This refers to the process of gradually paying off a debt through regular payments over a set period, factoring in both principal and interest.