Find the Interest Rate Needed for an Investment of $5,000

question 265

Multiple Choice

Find the interest rate needed for an investment of $5,000 to grow to an amount of $7,000 in 4 year(s) if interest is compounded continuously.

• A) 8.55% per year
• B) 8.41% per year
• C) 8.48% per year
• D) 8.62% per year
• E) 8.69% per year

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Definitions:

Government-provided Health Insurance

Health insurance schemes funded and managed by the government to offer medical coverage to its citizens.

Insurance Exchanges

Government-regulated markets for health insurance in which individuals seeking to purchase health insurance to comply with the personal mandate of the Patient Protection and Affordable Care Act (PPACA) of 2010 will be able to comparison shop among insurance policies approved by regulators. Each state will have its own exchange.

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The loss of economic efficiency that occurs when the competitive equilibrium in a market is not achieved or is distorted.