The effective interest rate over this period equals ...

Income Tax Fundamentals 2020
38th Edition
ISBN:9780357391129
Author:WHITTENBURG
Publisher:WHITTENBURG
Chapter2: Gross Income And Exclusions
Section: Chapter Questions
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Sheena has an individual retirement plan.
Her money is invested into a money market
fund that pays interest daily. Over a two-
year period in which no deposits or
withdrawals were made, the balance of her
account grew from R4 500 to R5 268,24.
The effective interest rate over this period
equals ...
A. 8,53%.
B. 6,10%.
C. 5,80%.
D. 8,20%.
Transcribed Image Text:Sheena has an individual retirement plan. Her money is invested into a money market fund that pays interest daily. Over a two- year period in which no deposits or withdrawals were made, the balance of her account grew from R4 500 to R5 268,24. The effective interest rate over this period equals ... A. 8,53%. B. 6,10%. C. 5,80%. D. 8,20%.
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