How Long Will It Take $50,000 Placed in a Savings

question 51

Multiple Choice

How long will it take $50,000 placed in a savings account at 10% interest to grow into $75,000?

• A)4.25 years
• B)5.00 years
• C)5.25 years
• D)5.50 years
• E)4.75 years

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Definitions:

EPS Growth Rate

The yearly rate at which a firm's earnings per share (EPS) increases or is expected to increase.

Rate Of Return

The financial gain or loss achieved on an investment during a predetermined period, shown as a percentage of the investment's initial outlay.

Stock Price

The cost of purchasing a share of a company's stock. It is determined by the supply and demand for the stock in the market.

Dividends

Dividends issued by a firm to its investors, typically funded by the company’s profit.