An Initial Investment of $3000 Doubles in Value in 8

question 8

Multiple Choice

An initial investment of $3000 doubles in value in 8.3 years. Assuming continuous compounding, what was the interest rate? Round to the nearest tenth of a percent.

• A) 8.4%
• B) 3.6%
• C) 4.2%
• D) 8.3%
• E) 100%

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Definitions:

Volume

In finance, it refers to the total number of shares or contracts traded for a specific security or market during a given period.

Calls

In finance, refers to an agreement that gives the buyer the right, but not the obligation, to buy a stock, bond, commodity, or other instrument at a specified price within a specific time period.

Step-Variable Cost

Costs that remain fixed over a specific range of production or activity, but jump to a higher level once a certain threshold is exceeded.

Fixed Cost

Expenses that do not change with the level of output or sales, such as rent or salaries.