What Is the Rate of Return on an Investment of $124,090

question 166

Multiple Choice

What is the rate of return on an investment of $124,090 if the company expects to receive $10,000 per year for the next 30 years?

• A) 7 percent
• B) 4 percent
• C) 6 percent
• D) 5.5 percent

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Definitions:

Journal Entry

A record of a financial transaction in the accounting books.

Trial Balance

A bookkeeping worksheet where the balances of all ledgers are compiled into debit and credit account columns to check the accuracy of the financial transactions recorded.

Reference Column

A column in a table or spreadsheet used to hold information or data that aids in categorization or identification.

General Journal

A ledger in which all transactions are initially recorded, dated, and described.