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CTP · Question #876
(Topic 9) An investment is purchased for $10,000.00 that offers compounding of the first year's interest and it matures at the end of year two. If the value at maturity is $11,664.00, what is the…
The correct answer is B. 8%. See the full explanation below for the reasoning.
Question
- (Topic 9)
An investment is purchased for $10,000.00 that offers compounding of the first year's interest and it matures at the end of year two. If the value at maturity is $11,664.00, what is the rate of return on the investment?
Options
- A7%
- B8%
- C9%
- D10%
How the community answered
(42 responses)- A2% (1)
- B79% (33)
- C7% (3)
- D12% (5)
Community Discussion
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