Your Financial Advisor Tells You That If You Earn the Historical

Multiple Choice

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