Annuity Interest Rate What Annual Interest Rate Would You Need

question 79

Multiple Choice

Annuity Interest Rate What annual interest rate would you need to earn if you wanted a $200 per month contribution to grow to $14,700 in five years?

• A)6.47 percent
• B)7.76 percent
• C)8.01 percent
• D)14.70 percent

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Definitions:

Type I Error

A statistical error made by rejecting the null hypothesis when it is actually true, known as a false positive.

Type II Error

The failure to reject a false null hypothesis, also known as a "false negative."

Null Hypothesis

A statement positing that there is no significant difference or effect, serving as the default assumption in hypothesis testing.

Type II Error

The error that occurs when a false null hypothesis is not rejected, also known as a "false negative."