How Many Years (And Months) Will It Take $1 Million

question 138

Multiple Choice

How many years (and months) will it take $1 million to grow to $3 million with an annual interest rate of 7.5 percent?

• A)15 years and 2.29 month
• B)17 years and 5.6 months
• C)18 years and 3.8 months
• D)19 years and 2.4 months

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Definitions:

Prices

Monetary values assigned to products and services which are determined by the interaction of supply and demand in the market.

Exchange Rates

The value of one currency for the purpose of conversion to another.

Price Level

The cumulative average pricing for goods and services across various industries within the economy.

Purchasing Power Parity

An economic theory that compares the relative value of different currencies based on the purchasing power of various goods and services, aiming to measure the real exchange rate.