When is the growth-adjusted interest rate for a geometric series equal to zero?
A)Growth is positive, but less than the interest rate.
B)Growth is positive and greater than the interest rate.
C)Growth is positive and equal to the interest rate.
D)Growth is negative.
E)Growth is positive.

Question

Quizplus · Accepted Answer

The growth-adjusted interest rate for a geometric series is equal to zero when the growth rate is positive and exactly equal to the interest rate. This is because the growth effectively cancels out the interest, resulting in a net growth rate of zero.

When Is the Growth-Adjusted Interest Rate for a Geometric Series