An Initial Investment of $4000 Grows at an Annual Interest

question 35

Multiple Choice

An initial investment of $4000 grows at an annual interest rate of 4% compounded continuously. How long will it take to double the investment?

• A)17.33 years
• B)18.33 years
• C)18.00 years
• D)17.00 years
• E)1 year

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Definitions:

Agency Problems

Conflicts of interest that arise when there's a disconnect in objectives between decision-makers (agents) and the owners (principals) of an entity.

Corporate Spies

Individuals or entities that engage in espionage or intelligence gathering on competitors for commercial purposes, not for national security.

Security Analysts

Professionals who perform analysis on securities or the security market to make investment recommendations.

Financial Scandals

Events in which companies, banks, or individuals are accused of unethical or illegal financial activities, often leading to widespread public outrage and financial losses.