Jeff Desires to Accumulate $13,603

question 118

Multiple Choice

Jeff desires to accumulate $13,603.83 by December 1, 2016. To accumulate that sum, he will make six equal semiannual deposits of $2,000, beginning on June 1, 2014, into a fund that earns interest compounded semiannually. What annual rate of interest must the fund provide to yield the desired sum?

• A) 5%
• B) 6%
• C) 10%
• D) 12%

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Definitions:

Uniformly Distributed

Describes a type of distribution where all outcomes are equally likely over a specific interval.

Assembling Product

The process of putting together various components or parts to create a finished product ready for use or sale.

Uniformly Distributed

Uniformly distributed indicates that all outcomes in a data set or probability distribution have the same or nearly equal chance of occurring.

Standard Deviation

A tool to determine the degree of difference or dispersion within a batch of data.