Shawn Puts Money into an Account

question 93

Multiple Choice

Shawn puts money into an account.One year later he sees that he has 6 percent more dollars and that his money will buy 5 percent more goods.

• A)The nominal interest rate was 11 percent and the inflation rate was 5 percent.
• B)The nominal interest rate was 6 percent and the inflation rate was 5 percent.
• C)The nominal interest rate was 5 percent and the inflation rate was -1 percent.
• D)The nominal interest rate was 6 percent and the inflation rate was 1 percent.

Understand and apply the formula for compounded annual growth rate (CAGR).

Evaluate investment options to determine which provides the highest future value.

Determine the time required to reach a specific financial goal.

Understand the impact of different compounding frequencies on investment growth.

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Definitions:

Department Manager

A role within an organization responsible for managing the operations, staff, and budget of a department.

Applicants

Individuals who apply or show interest in a job position or educational program.

Recruit Externally

The process of hiring employees from outside the organization rather than promoting from within.

Present Employees

The current workforce of an organization.