Assuming That the Interest Is Compounded Annually and No Money

question 72

Multiple Choice

Assuming that the interest is compounded annually and no money is withdrawn, what interest rate would be required in order to double your savings in 12 years?

• A)1.06%
• B)5.95%
• C)10%
• D)12%
• E)15%

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Definitions:

Cash Inflow

refers to the movement of money into a business, often from operations, financing, or investing activities, contributing to the company's cash balance.

Cash Outflow

The movement of money out of a business, project, or investment, usually in the form of expenses, purchases, or cash distributions.

Cash Flow Ratio

A metric that assesses the liquidity of a company by comparing its operating cash flow to its current liabilities.