At Approximately What Rate Would You Have to Invest a Lump-Sum

question 2

Multiple Choice

At approximately what rate would you have to invest a lump-sum amount today if you need the amount to triple in six years? Assume interest is compounded annually.

• A)20%
• B)12%
• C)24%
• D)Not enough information is provided to answer the question.
• E)None of the above is a correct answer.

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Definitions:

Mid-Ocean Ridge

An underwater mountain range formed by plate tectonics, where new oceanic crust is created by volcanic activity and then spreads away from the ridge.

Island Arcs

Curved chains of volcanic islands located along a convergent tectonic plate boundary, formed by the subduction of an oceanic plate beneath another plate.

Basalt Eruptions

Volcanic eruptions that produce basalt, a dark-colored volcanic rock rich in iron and magnesium, characterized by low viscosity lava flows.

Ophiolite

A section of the Earth's oceanic crust and the underlying upper mantle that has been uplifted and exposed above sea level.