Interest Rate: Sofie Wants to Invest $25,000 in a Spa

question 90

Multiple Choice

Interest rate: Sofie wants to invest $25,000 in a spa that her sister is starting. She will triple her investment in six years. What is the rate of return that Sofie is being promised? (Rounded to the nearest per cent.)

• A) 18%
• B) 20%
• C) 12%
• D) 25%

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Definitions:

Securities Fraud

A type of serious financial fraud involving the manipulation of the securities markets, such as insider trading or misleading statements by companies.

Corporate Fraud

Illegal activities undertaken by an individual or company in a deceitful manner, aimed at financial gain.

Business Ethics

The study and examination of moral and ethical problems that arise in a business environment.