Suppose That You Had Deposited $100 in a Bank Account

question 130

Multiple Choice

Suppose that you had deposited $100 in a bank account for each of the last 5 years.What annual interest rate is attached to this account if there is now (at the end of the fifth year) $758.92 in the account?

• A)10%
• B)16%
• C)19%
• D)21%
• E)23%

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Definitions:

Rights Offerings

A corporate approach to raising capital by giving existing shareholders the opportunity to buy additional shares directly from the company at a predetermined price, usually at a discount.

Industrialized Nations

Countries with developed economies characterized by significant levels of industrial output and infrastructure.