Your Parents Paid $1,000 for a College Fund Bond When

Multiple Choice

Your parents paid $1,000 for a college fund bond when you were born.Today is your 20^th 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.