What Annual Rate of Return Is Earned on a $13,000

question 38

Multiple Choice

What annual rate of return is earned on a $13,000 investment made in year 2 when it grows to $17,000 by the end of year 7?

• A) 10.64 percent
• B) 4.28 percent
• C) 8.04 percent
• D) 5.51 percent

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Definitions:

Brightness

The attribute of visual perception according to which an area appears to emit more or less light.

Perceptual Illusion

A misinterpretation of a true sensation, where the perceived information differs from the objective reality.

Physical Illusion

A misinterpretation of a real external stimulus, often leading to a distorted perception of reality.

Induced Movement

An optical illusion in which a stationary object appears to move due to the motion of another surrounding object.