You Have Money in an Account at 6% Interest, Compounded

question 126

Multiple Choice

You have money in an account at 6% interest, compounded weekly. To the nearest year, how long will it take for your money to double?

• A) 9 years
• B) 16 years
• C) 7 years
• D) 12 years

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Definitions:

Margin of Safety

The difference between actual or expected sales and the break-even point, indicating the amount by which sales can drop before a company incurs losses.

Break-Even Sales

The amount of revenue required to cover total fixed and variable expenses during a specific period, resulting in no profit or loss.

Current Sales

The total sales revenue that a company generates in the present or most recent accounting period.

Operating Leverage

A measure of how sensitive a company's operating income is to changes in sales volume, indicating the degree of fixed versus variable costs.