If Your Income Increases at a Rate of 2% Per

question 69

Multiple Choice

If your income increases at a rate of 2% per year,how long will it take to double your income?

• A) 10 years
• B) 25 years
• C) 35 years
• D) 50 years
• E) 75 years

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Definitions:

Contractual Interest Rate

The agreed-upon rate of interest that is to be paid on a loan, as defined in the loan agreement.

Face Value

The nominal value printed on a bond or other financial instrument, independent of its market value.

Bonds Payable

A financial accounting term that refers to the outstanding debts a company owes to holders of its bond securities, due for repayment at some future date.

Premium

An amount paid for an insurance policy or the amount by which a bond or stock's price exceeds its face value.