How Many Years Will It Take for $500 to Grow

question 10

Multiple Choice

How many years will it take for $500 to grow to $1,039.50 if it is invested at 5% compounded annually?

• A) 15
• B) 14
• C) 13
• D) 12

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Definitions:

Medical Bills

Expenses incurred for receiving medical treatment and health services.

Expected Value

In reference to a random variable, the weighted average of all possible values, where the weights on each possible value correspond to the probability of that value occurring.

Premium

An amount paid for an insurance policy or an amount over the regular price for enhanced or additional features or services.

Insurance Policy

A contract between an individual or entity and an insurance company, outlining coverage terms and conditions for specific risks.