What Effective Annual Rate of Return (EAR) Would Rayne Need

question 161

Multiple Choice

What effective annual rate of return (EAR) would Rayne 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) 5.98%
• B) 6.55%
• C) 4.87%
• D) 6.14%

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Definitions:

Specialised Tasks

Activities or duties that require a specific set of skills or expertise to be performed efficiently.

Standardising Work Procedures

The practice of developing and implementing uniform procedures for tasks to increase efficiency and consistency across an organization.

Organisational Commitment

The psychological attachment and loyalty an employee feels towards their organization, which can influence their willingness to work and perform.

Loyalty

Loyalty is the quality of being faithful to commitments or obligations, often reflected in consistent support or allegiance to a person, group, institution, or cause.