What Annual Rate of Return Would Grandma Zoe Need to Earn

question 43

Multiple Choice

What annual rate of return would Grandma Zoe need to earn if she deposits $1,000 per month into an account beginning one month from today in order to have a total of $1,000,000 in 30 years?

• A) 4.55%
• B) 5.28%
• C) 5.98%
• D) 6.23%

---

Definitions:

Population Standard Deviation

A measure of the dispersion of a population’s values from the mean, indicating how spread out the data points are.

Sample Size

The number of observations or elements selected from a population to study certain characteristics.

Standard Error

A statistical measure that estimates the accuracy with which a sample distribution represents a population, often used in the calculation of confidence intervals.

Fill Weights

The predetermined or measured weights of product that fill a container or package.