Your Financial Advisor Tells You That If You Earn the Historical

question 14

Multiple Choice

Your financial advisor tells you that if you earn the historical rate of return on a certain mutual fund,then in three years your $20,000 will grow to $23,152.50.What rate of interest does your financial advisor expect you to earn?

• A)5 percent
• B)6 percent
• C)7 percent
• D)8 percent

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Definitions:

Trade Relations

The economic interactions and reciprocal policies that govern commerce between different countries or regions.

Alexander Hamilton

A founding father of the United States, notable for his role as the first Secretary of the Treasury and author of a significant portion of the Federalist Papers.

Fur Trade

The trading of animal pelts (especially those of beavers, which were highly sought after) between the indigenous peoples of North America and European traders from the 16th to the 20th centuries.

Western Exploration

A period of history involving the investigation and settlement of new lands, especially in the American West, by European powers and later American settlers.