Approximately What Interest Rate Is Needed to Double an Investment

question 30

Multiple Choice

Approximately what interest rate is needed to double an investment over eight years?

• A) 8 percent
• B) 9 percent
• C) 12 percent
• D) 100 percent

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Definitions:

Asset Efficiency

A measure of how effectively a company uses its assets to generate revenue.

Salvage Value

The projected resale price of an asset upon reaching the end of its useful period, accounted for in computing depreciation.

Plant Assets

Long-term tangible assets that are used in the operation of a business and are not intended for resale.

Depreciation Expense

Apportioning a physical asset’s cost over its estimated useful life.