Exploring Annuity Growth Time Calculation

What is the monthly interest rate if the annual rate is 3%?

• 3%

• 0.03%

• 0.25%

• 1.5%

What type of financial problem is described in the scenario?

• Annuity calculation

• Stock valuation

• Direct investment analysis

• Simple interest calculation

What is the future value of the annuity aimed to be?

• $15,000

• $5,000

• $1,000

• $10,000

Which operation is performed first to simplify the annuity formula?

• Addition

• Subtraction

• Division

• Multiplication

What is the result of multiplying 10,000 by 0.0025?

• 250

• 2500

• 25

• 2.5

What is the next step after simplifying the equation to 0.25 equals 1.0025 to the 12n minus 1?

• Divide by 0.0025

• Multiply by 12

• Add 1 to both sides

• Subtract 1 from both sides

What mathematical tool is used to solve the equation involving the exponent 12n?

• Factorial

• Logarithm

• Square root

• Matrix

What is the logarithm of 1.25 approximately?

• 1.25

• 0.0969

• 0.125

• 0.0130

After applying logarithms, what is the final step to find n?

• Multiply the logarithms

• Subtract the logarithms

• Divide the logarithms

• Add the logarithms

Approximately how many years will it take for the account to grow to $10,000?

• 15 years

• 5 years

• 10 years

• 7.5 years