You Are Considering Investing in a Third World Bank Account

question 14

Multiple Choice

You are considering investing in a Third World bank account that pays a nominal annual rate of 18%, compounded monthly. If you invest $5,000 at the beginning of each month, how many months will it take for your account to grow to $250,000? Round fractional years up.

• A) 23
• B) 27
• C) 32
• D) 38

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Definitions:

Material Fact

A fact that could influence the decision of a reasonable person or is likely to affect the outcome of a case, contract, or transaction.

Misrepresentation

A false statement of fact made by one party to another, which induces the latter into entering a contract.

Inducement

An offer or promise made to persuade or influence a person to act in a certain way, often used in contracts and employment agreements.

Void Agreement

A contract or agreement that is legally unenforceable from the outset due to an inherent issue, such as illegality or lack of capacity.