How Long Will It Take $900 to Double Itself If

question 2

Multiple Choice

How long will it take $900 to double itself if it is invested at 11% interest compounded semiannually? Please round the answer to the nearest tenth.

• A) 6.5 years
• B) 9.5 years
• C) 7.0 years
• D) 5.5 years
• E) 7.5 years

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Definitions:

Allocative Efficiency

Allocative Efficiency occurs when resources are distributed in a way that maximizes the net benefit to society, ensuring that the right goods are produced to meet consumer preferences.

Productive Efficiency

A situation where an economy or a production process is operating in such a way that it could not produce more of one good without producing less of another.

Profit-Maximizing

This is the process by which a company adjusts its production levels and pricing strategies to achieve the highest possible profit.

Short Run

A period in which at least one input is fixed and cannot be changed by the firm.