A Recent Advertisement in the Financial Section of a Magazine

question 109

Multiple Choice

A recent advertisement in the financial section of a magazine carried the following claim: "Invest your money with us at 14 percent,compounded annually,and we guarantee to double your money sooner than you imagine." Ignoring taxes,how long would it take to double your money at a simple rate of 14 percent,compounded annually?

• A) Approximately 3.5 years
• B) Approximately 5 years
• C) Exactly 7 years
• D) Approximately 10 years
• E) Exactly 14 years

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Definitions:

Adrenal Cortex

The outer layer of the adrenal glands that produces steroid hormones such as cortisol and aldosterone.

Gonads

Primary sex organ; produce gametes and sex hormones.

Follicle-Stimulating Hormone

A hormone involved in the reproductive processes of both males and females, stimulating the growth of ovarian follicles in females and spermatogenesis in males.

Oxytocin

A hormone and neurotransmitter involved in childbirth and lactation, also associated with behaviors like bonding, trust, and empathy.