A Sum Of $\$ 2000$ Was Invested for Four Years and the Interest Was Compounded

question 53

Multiple Choice

A sum of $\$ 2000$ was invested for four years and the interest was compounded quarterly. If this sum amounted to $\$ 2588.44$ after the given time, what was the interest rate?

• A) \(6.25 \%\)
• B) \(6.5 \%\)
• C) \(7 \%\)
• D) \(7.5 \%\)
• E) \(8.5 \%\)  

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Definitions:

Cash Flows

The movement of money into and out of a company from operational, investment, and financing activities.

Shares Outstanding

The total number of shares of a corporation that are in the hands of the public, including shares held by institutional investors.

Tender Offer

A tender offer is a proposal by an individual or entity to purchase a significant percentage of a company's stock from its shareholders at a specific price, usually at a premium to the market price.

Antitrust Laws

Legislation enacted to prevent monopolies and promote competition among businesses.