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:

Average Total Cost

The total cost of production (fixed plus variable costs) divided by the number of units produced.

Fixed Cost

refers to expenses that do not change with the level of production or sales, such as rent, salaries, and insurance.

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