What Annual Interest Rate Would You Need to Earn If

question 21

Multiple Choice

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:

Prescription

A prescription is a formal instruction written by a licensed medical professional that authorizes a patient to be provided a medicine or treatment.

Expectations

The beliefs or forecasts about future events, which may influence individuals' decisions and behaviors in various contexts.

Actual Behavior

The observable actions or reactions of an individual or group in a particular situation.

Freely Interacting

This refers to the process or state where individuals or groups communicate and collaborate without significant restrictions, barriers, or formal structures.