What Annual Rate Must Be Earned to Turn $50,000 into $250,000

question 23

Multiple Choice

What annual rate must be earned to turn $50,000 into $250,000 in 15 years?

• A)12.25%
• B)8.45%
• C)11.33%
• D)10%

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Definitions:

Long-term Assets

Assets owned by a company meant to provide value for more than one year, such as real estate, machinery, or patents.

Current Assets

Resources that are anticipated to be turned into cash, sold, or utilized within a year or during the standard operational cycle of a company.

Goodwill

An intangible asset that represents the value of a company's brand name, solid customer base, good customer relations, good employee relations, and any patents or proprietary technology.

Intangible Assets

Assets that cannot be physically touched or held, such as patents, trademarks, and goodwill.