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

question 76

Multiple Choice

Interest rate: Pedro Martinez wants to invest $25,000 in a spa that his sister is starting. He will triple his investment in six years. What is the rate of return that Pedro is being promised? (Rounded to the nearest percent.)

• A) 18%
• B) 20%
• C) 12%
• D) 25%

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Definitions:

Diversity Jurisdiction

A legal principle allowing federal courts to hear cases where the parties are from different states or countries and the amount in controversy exceeds a specified threshold.

Federal Court

A court established under the federal judiciary system of a country that deals with matters pertaining to federal laws and constitutional issues.

Amount In Controversy

The monetary value or stake of a lawsuit, determining whether a federal court has jurisdiction over the case.

Constitution

The fundamental law or set of principles by which a country or organization is governed, outlining the structure of government and individual rights.