At What Simple Annual Interest Rate Would $1,896 Grow to $2,000

question 88

Multiple Choice

At what simple annual interest rate would $1,896 grow to $2,000 in 300 days?

• A) 6.7%
• B) 8.5%
• C) 7.8%
• D) 5.5%
• E) 6.3%

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Definitions:

Acquiring Firm

A company that purchases or takes over another company through a merger, acquisition, or takeover.

Target Firm

In mergers and acquisitions, the company that is being considered or has been chosen for a takeover by another company.

NPV

Net Present Value; a financial metric that calculates the difference between the present value of cash inflows and the present value of cash outflows over a period of time.

Shares Outstanding

Refers to the total number of shares issued by a corporation that are currently owned by investors, including restricted shares owned by company insiders.