Floyd Ferris Invested $3,000 into an Account Five Years Ago

question 28

Multiple Choice

Floyd Ferris invested $3,000 into an account five years ago.Today his account has grown to have a balance of $3,927.50.Given that his account offered monthly compounding of interest,the APR on this account is was closest to:

• A) 5.00%
• B) 5.25%
• C) 5.40%
• D) 5.54%

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Definitions:

Lower Price

A pricing strategy involving setting a cost below the average market price to attract customers or gain market share.

Target-Return Pricing

A pricing method whereby the price is based on the amount of investment you have put into your business.

Profit Margin

A financial metric used to assess a firm's financial health by revealing the percentage of money earned as profit.

Premium Price

Pricing goods or services higher than the market average to reflect their perceived extra value or quality.