How Many Years (And Months) Will It Take $4 Million

question 32

Multiple Choice

How many years (and months) will it take $4 million to grow to $7 million with an annual interest rate of 12 percent?

• A) 4 years and 1.92 months
• B) 4 years and 11.28 months
• C) 5 years and 6.54 months
• D) 5 years and 10.86 months

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Definitions:

Secured Debt

Debt backed by collateral to reduce the risk of lending, such as a mortgage.

Secured Creditor

A lender, seller, or any other person in whose favor there is a security interest.

Insurance Company

An organization that offers risk management in the form of insurance contracts, pledging to compensate for specific potential future losses in exchange for periodic payments.

Liquidation Bankruptcy

A legal process designed to pay off the debts of an individual or company by liquidating their assets, often referred to as Chapter 7 bankruptcy in the United States.