The Solution to This Problem Requires Time Value of Money

question 202

Multiple Choice

The solution to this problem requires time value of money calculations. Reference to Tables 9-1 through 9-4 in the text is necessary to complete the calculations. Approximately how many years will it take for a sum invested at 8% with annual compounding to quadruple?

• A) 81 years
• B) 9 years
• C) 18 years
• D) 17 years

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Definitions:

Rubella

A viral infection that can cause retardation and heart disease in the embryo. Also called German measles.

Birth Defects

Physical or biochemical abnormalities present at birth that can cause physical or mental disability.

Pregnancy

The condition of carrying one or more embryos or fetuses in the womb, typically lasting about 40 weeks in humans from the last menstrual period to childbirth.

Pre-eclampsia

During pregnancy, a health issue identified by increased blood pressure and indications of injury to another organ system, primarily the liver or kidneys.