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Question
Zoey is planning to invest $5,000 in a fixed income security at the end of each of the next four years. She will receive $23,000 at the end of four years. If interest is compounded annually, what is the annual rate of return earned on the investment?
a. 5.7%
b. 7.3%
c. 8.7%
d. 10.2%
e. 9.4%
Answer
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Related questions
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Which of the following agreements is included in the Basel III Accord (2010)?
a. Agreement to increase banks' capital (owners' equity) requirements in an effort to reduce the risk that mega bank failures will cause future financial crises
b. Agreement to put restrictions on the ability of the U.S. government to use taxpayers' funds to bail out large financial institutions
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Q:
Which of the following is true about financial institutions in the United States compared to those in other countries?
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a. True
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a. True
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b. False
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Q:
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e. Firms with relatively low debt ratios have higher expected returns when business is poor.