Your financial advisor tells you that if you earn the historical rate of return on a certain mutual fund, then in three years your $20,000 will grow to $23,152.50 . What rate of interest does your financial advisor expect you to earn?
a. 5 percent
b. 6 percent
c. 7 percent
d. 8 percent
a
You might also like to view...
The exchange rate for a foreign currency that is determined by supply and demand is
A) a fixed exchange rate. B) a controlled exchange rate. C) a constrained exchange rate. D) a flexible exchange rate.
Policies to increase the supply of money in the economy are primarily a concern of microeconomics
a. True b. False Indicate whether the statement is true or false
Diminishing marginal returns are the reason why some industries have positively-sloped long-run average cost curves
a. True. b. False.
The towns of Jekyll and Hyde each have a labor force of 2,000 people. In Jekyll, 500 people were unemployed for the entire year, while the rest of the labor force was employed continuously. In Hyde, every member of the labor force was unemployed for three months and was employed for nine months. The average duration of unemployment spells over the year was ________ months in Jekyll and ________ months in Hyde.
A. 3; 9 B. 12; 3 C. 3; 3 D. 12; 9