Bernie Madoff invites you to invest $1,000 in his fund now and be guaranteed at least $1,500 in 4 years. What is the effective rate that Mr. Madoff is promising you?

10.67%

Explanation:

Mr Madoff is offering to grow the current value of $1,000 to a future value of $1,500 in 4 years.

This is a future value problem.

1,500 = 1,000 * ( 1 + interest) ^ 4 years

( 1 + interest) ^ 4 = 1,500/1,000

( 1 + interest) = 4√(1,500/1,000)

1 + interest = 1.1066819197

Interest = 1.1066819197 - 1

= 10.67%

for submitting your question to

the answer to your question is : c) a government agency or homeowner

due to his line of work, he is most likely employed by a government agency or homeowner due to the other choices not being logical haha.