Your parents paid $1,000 for a college fund bond when you were born. Today is your 20th birthday and you are ready to cash the bond which has grown to a value of $3,361.85. What was the average annual rate of return on your college fund bond?
A) 5.50%
B) 6.25%
C) 6.73%
D) There is not enough information to answer this question.
B
Explanation: B) Via Calculator: N = 20, PV = 1,000, FV = 3,361.85, Solve for I =6.25%.
Business
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Suppose you purchase a call option for $5 and a strike price of $20. On the expiration day, the price of the stock is $30. What is the return on the call option if you hold your position until maturity?
A) 25% B) 50% C) 75% D) 100%
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(Appendix) The first step in computing the cash paid for merchandise is to determine the amount of inventory purchased during the year
a. True b. False Indicate whether the statement is true or false
Business