Faisal Has $12,000 in His Savings Account and Can Save

question 42

Multiple Choice

Faisal has $12,000 in his savings account and can save an additional $3600 per year. If interest rates are 12%, how long will it take his savings to grow to $47,000?

• A) 4.3 years
• B) 6.3 years
• C) 5.3 years
• D) 7.3 years

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Definitions:

Annual Sales

The total revenue a company generates from its operations over the course of a single fiscal year.

Total Debt

The sum of all liabilities and obligations owed by an entity, both short-term and long-term.

Total Equity

The total net value of a company, calculated by subtracting total liabilities from total assets, representing the owners' claim on company assets.

Profit Margin

A financial metric expressed as a percentage that measures the amount of net income earned with each dollar of sales by comparing the net income and the revenue.