The Number of Periods Needed to Double an Investment When $\mathrm { n } = \log _ { 1.05 } 2$

question 78

Multiple Choice

The number of periods needed to double an investment when a lump sum is invested at 10%, compounded semiannually, is given by n $\mathrm { n } = \log _ { 1.05 } 2$ Find the number of years before the investment doubles in value, to the
Nearest tenth of a year.

• A) 7.1 years
• B) 28.4 years
• C) 14.2 years
• D) 3.6 years

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Definitions:

Regression Model

A statistical model used to estimate the relationship between a dependent variable and one or more independent variables.

Stepwise Regression

A method of regression analysis in which the choice of predictive variables is carried out by an automatic procedure.

Regression Equation

An equation that describes the relationship between a dependent variable and one or more independent variables, typically used for prediction or forecasting.

Regression Model

A statistical technique that models and analyzes the relationship between a dependent variable and one or more independent variables.