At the End of T Years, the Future Value of an Investment

question 130

Multiple Choice

At the end of t years, the future value of an investment of $7000 in an account that pays 7% APR compounded monthly is $S = 7000 \left( 1 + \frac { 0.07 } { 12 } \right) ^ { 12 t }$ dollars. Assuming no withdrawals or additional deposits, how long will it take
For the investment to reach $21,000? Round to three decimal places.

• A) 23.610 years
• B) 15.740 years
• C) 12.592 years
• D) 18.888 years

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Definitions:

Perfection Standards

Ideal or flawless benchmarks set for processes or products to ensure the highest quality level attainable.

Optimum Operating Conditions

The most favorable conditions under which a process, system, or machine operates most efficiently and effectively.

Peak Efficiency

The optimal state of operation where resources are used most effectively and the output is maximized without waste.

Perfection Standards

Standards that represent ideal performance levels or the absence of defects in products or processes.