Number of Periods It Takes an Investment to Grow a Certain

question 86

Multiple Choice

Number of Periods it Takes an Investment to Grow a Certain Amount: Sally Wilson is planning her retirement. She is presently investing in a 401(k) but needs an additional $500,000 to reach her retirement goal. As luck would have it, Sally just won a brand new car that is worth $36,000 in a raffle. If Sally were to sell the car and invest the $36,000 proceeds at a rate of 6.50%, compounded annually, how long will it be before Sally could retire? (Round off to the nearest 1/10 of a year)

• A) 36.6 years
• B) 41.8 years
• C) 52.2 years
• D) 24.0 years

Determine the effect of intangible benefits and salvage value on the financial viability of an investment.

Understand the role of discount rates in evaluating the time value of money in capital budgeting decisions.

Understand the role and impact of MOOCs in corporate learning.

Recognize the various employee development strategies and their applications.

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Definitions:

Sulfated Battery

A battery condition where lead sulfate crystals form on the battery’s electrodes, usually due to prolonged discharging, reducing its capacity and performance.

Freeze

A physical state transition where a liquid becomes a solid, typically when temperature drops below its freezing point.

Electrolyte Specific Gravity

A metric indicating the density of the electrolyte solution in a battery, relative to water, used to assess battery health.

Fully Charged

The state of a battery or cell when it has reached its maximum energy storage capacity.