Annuity Interest Rate What Annual Interest Rate Would You Need

question 92

Multiple Choice

Annuity Interest Rate What annual interest rate would you need to earn if you wanted a $500 per month contribution to grow to $27,050 in four years?

• A)2.37 percent
• B)5.77 percent
• C)6.00 percent
• D)13.53 percent

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Definitions:

Bailed Goods

Items that are temporarily handed over to someone else for custody or care, often with the expectation of return.

Conversion

The unauthorized possession or control over someone else's property, converting it for one's own use.

Possession

The act of having control over an object or property, with or without legal ownership.

Bailment

The temporary placement of control over, or possession of personal property by one person, the bailor, into the hands of another, the bailee, for a specific purpose.