Mr Fish Wants to Build a House in 8 Years

question 7

Multiple Choice

Mr. Fish wants to build a house in 8 years. He estimates that the total cost will be $150,000. If he can put aside $10,000 at the end of each year, what rate of return must he earn in order to have the amount needed?

• A) Between 17% and 18%
• B) Between 15% and 16%
• C) 12%
• D) None of these

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Definitions:

Business Ethics

Ethics in a business context; a consensus of what constitutes right or wrong behavior in the world of business and the application of moral principles to situations that arise in a business setting.

Corporate Policy

Guidelines or principles set by a company to direct the actions and decision-making of its employees and management.

Outcome-Based Ethics

An ethical framework that focuses on the results or consequences of actions to determine their moral value, rather than the actions themselves.

Potential Benefits

The possible advantages or positive outcomes that may result from a particular action or policy.