Examlex

Solved

Approximately, How Many Years Would It Take Your Money to Grow

question 93

Multiple Choice

Approximately, how many years would it take your money to grow from $5,000 to $10,000 if you could earn 6% interest?


Definitions:

Simple Interest

Interest calculated based only on the principal amount, ignoring the effect of compounding.

Interest

The cost of borrowing money or the return on investment for savings and investments, often expressed as a percentage.

Compounded Annually

Calculating interest on both the initial principal and the accumulated interest from previous periods on an annual basis.

Future Value

A specified future date's value of an asset or cash, which is equivalent to a certain amount of money today.

Related Questions