At an Effective Annual Interest Rate of 20 Percent,how Many

question 112

Multiple Choice

At an effective annual interest rate of 20 percent,how many years will it take a given amount to triple in value? (Round to the closest year. )

• A) 5
• B) 8
• C) 6
• D) 10
• E) 9

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Definitions:

120/20 Fund

A type of mutual fund that employs a long/short strategy, allowing it to invest 120% in long positions and -20% in short positions.

Prospectus

A formal document that provides details about an investment offering for sale to the public.

Management Fee

A charge paid to investment managers for their services, typically a percentage of the assets under management.

Assets

Economic resources owned or controlled by an individual or entity, capable of producing value.