At what annual rate would $500 grow to $1,948 in 12 years? (Note-Solve as a present value problem.)
A) 12.0 %
B) 13.0 %
C) 12.5 %
D) 11.0 %

Name: At what annual rate would $500 grow to $1,948 in 12 years? (Note-Solve as a present value problem.) A) 12.0 % B) 13.0 % C) 12.5 % D) 11.0 %
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Quizplus · Accepted Answer

The future value formula is FV = PV * (1 + r)^n. Plugging in the values: 1948 = 500 * (1 + r)^12. Solving for r gives approximately 12.0%.

At What Annual Rate Would $500 Grow to $1,948 in 12