If $P Is Invested for N Years at 12% Compounded

question 19

Multiple Choice

If $P is invested for n years at 12% compounded continuously, the rate at which the future value is growing is . In how many years will the future value double? Round your answer to one decimal place. ​

• A)9.2 years
• B)7.8 years
• C)5.8 years
• D)11.2 years
• E)10.8 years

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Definitions:

Nominal Income

The amount of money received in a specified period before adjusting for inflation.

Revealed Preference

An economic concept suggesting that the preferences of consumers can be observed by their purchasing habits and choices.

Inflation Level

Inflation level measures the rate at which the general level of prices for goods and services is rising, eroding purchasing power.

Base Year

A specific year chosen as a point of reference or benchmark for financial or economic data comparison over time.