How Long (In Years) Would $450 Have to Be Invested

question 22

Multiple Choice

How long (in years) would $450 have to be invested at an annual rate of 12%, compounded continuously, to amount to $790?

• A)6.30 years
• B)4.97 years
• C)1.13 years
• D)5.68 years
• E)4.69 years

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Definitions:

Carrying Value

Carrying value is the book value of an asset or liability on a company's balance sheet, calculated as the original cost minus any depreciation, amortization, or impairment costs.

Market Rate

The prevailing price or interest rate available in the marketplace for goods, services, or securities.

Contractual Rate

The agreed-upon interest rate specified in a contract, such as in a loan agreement or bond.

Market Rate

The prevailing interest rate or cost of borrowing for securities in the open market, often influenced by supply and demand.