A Recent Advertisement in the Financial Section of a Magazine

question 79

Multiple Choice

A recent advertisement in the financial section of a magazine carried the following claim: "Invest your money with us at 14 percent,compounded annually,and we guarantee to double your money sooner than you imagine." Ignoring taxes,how long would it take to double your money at a nominal rate of 14 percent,compounded annually?

• A) 3.66 years
• B) 5.29 years
• C) 7.00 years
• D) 10.24 years
• E) 14.00 years

---

Definitions:

Paleolithic Art

Prehistoric art made by humans during the Paleolithic era, characterized by cave paintings, carvings, and sculptures.

Mammoth Ivory

Ivory derived from the tusks of mammoths, often used in art or as material for tools and ornaments by prehistoric humans.

Silver

A precious metal with a brilliant white metallic luster, known for its conductivity, malleability, and being used in jewelry, currency, and various industrial applications.

Paleolithic Art

Prehistoric art made during the Paleolithic era, characterized by cave paintings, engravings, and small sculptures, reflecting the earliest known human artistic achievements.