What Annually Compounded Rate of Return Must Thiva Earn in Her

question 22

Multiple Choice

What annually compounded rate of return must Thiva earn in her TFSA account in order for month end contributions of $950 to accumulate $1 million after 25 years?

• A) 0%
• B) 8.97%
• C) 8.62%
• D) 0.716%
• E) 7.16%

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Definitions:

Chain Termination

A process in polymerization or DNA synthesis where growth of the polymer chain is stopped by a terminating molecule.

Ethane

A simple aliphatic hydrocarbon with the formula C2H6, consisting of two carbon atoms single-bonded together and six hydrogen atoms.

UV Light

Ultraviolet light, a type of electromagnetic radiation with a wavelength shorter than visible light but longer than X-rays.

Reaction Rates

A measure of how quickly the concentration of reactants decreases or the concentration of products increases over time in a chemical reaction.