A $15,000 Deposit Earns 6% Compounded Quarterly

question 139

Multiple Choice

A $15,000 deposit earns 6% compounded quarterly. Rounded to the nearest month, how long (before the first withdrawal) must the deposit be allowed to grow before it can provide 24 quarterly withdrawals of $1,200.

• A) 7 years
• B) 7 years and 3 months
• C) 7 years and 11 months
• D) 8 years and 3 months
• E) 8 years and 5 months

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Definitions:

Repositioned

The strategic process of changing the market position of a product, brand, or company, often involving adjustments in marketing, messaging, or target audience.

Oval Packaging

A type of product packaging that has an oval shape, often used to differentiate products on shelves and to give a distinctive aesthetic.

Shelf Space

Refers to the amount of area or space available on retail shelves allocated to display merchandise or products.

Brand Licensing

A contractual arrangement between firms, whereby one firm allows another to use its brand name, logo, symbols, or characters in exchange for a negotiated fee.