What Is the Quarterly Interest Rate That You Will Need

question 52

Multiple Choice

What is the quarterly interest rate that you will need to earn in order for an investment of $1635 to grow to be $1748.73 after 2.25 years?

• A) 12.93%
• B) 13.93%
• C) 10.93%
• D) 8.93%
• E) 3.00%

---

Definitions:

Unrealized Gains

Increases in the value of an asset that have not been sold, hence not yet converting the gain into cash.

Available-For-Sale Securities

Financial assets that are purchased with the intention of selling before their maturity date, not held for long-term investment.

Trading Debt Securities

The act of buying and selling debt instruments, such as bonds, in the financial markets as a means of investment or speculation.

Fair Value Adjustment

An accounting process to adjust the book value of an asset or liability to its fair value.