Samantha Jee Put $3,000 into a Mutual Fund Yielding a 12

question 132

Multiple Choice

Samantha Jee put $3,000 into a mutual fund yielding a 12 percent annual rate of return.Using the Rule of 72,calculate approximately how long it will take for the investment to double in value.

• A)Two years
• B)Two years and four months
• C)Six years
• D)Seven years and four months

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Definitions:

FA/Sales Ratio

A financial ratio that compares a company's fixed assets to its sales revenue, indicating how well assets are being used to generate sales.

Fixed Assets

Long-term tangible assets used in the operation of a business and not expected to be converted to cash in the short term.

Cash Generated

The amount of money produced by a company's normal business operations after accounting for operational expenses and working capital.

Additional Funds Needed

Estimated funds required beyond what is currently available to the business to finance projected growth.