Sara would like to evaluate the performance of her portfolio over the past 10 years. What compound annual rate of return

Sara would like to evaluate the performance of her portfolio over the past 10 years. What compound annual rate of return has she achieved is she invested $12,000 10 years ago and now has $25,000?

A. Between 8% and 9%
B. Between 10% and 11%
C. Between 9% and 10%
D. Between 7% and 8%

PVIF = PV (App. B: 10 periods)
FV
= $12,000 = 0.48 Return: between 7% and 8%
$25,000

Matching Questions
 

Match the following with the items below:? 

1. Yield	The payment of an equal stream of cash into a fund which increases in size (depending on the interest rate received) up to a future point in time.	4
2. future value	The interest or return is accumulated every six months.	3
3. semi-annual compounding	The discounted value of a future sum or annuity as of today's value.	8
4. future value of an annuity	A series of consecutive payments or receipts of an equal amount.	5
5. Annuity	The percentage rate at which future sums or annuities are brought back to their present value.	6
6. discount rate	The future value of a single amount or annuity when compounded at a given interest rate for a specified period of time.	2
7. interest factor (IF)	It is based on the number of periods (n) and the interest rate (i) and whether or not there is more than one cash flow.	7
8. present value	The interest rate that equates a future value of an annuity to a given present value.	1