Approximately What Interest Rate Is Needed to Double an Investment

question 30

Multiple Choice

Approximately what interest rate is needed to double an investment over eight years?

• A) 8 percent
• B) 9 percent
• C) 12 percent
• D) 100 percent

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Definitions:

Interest Receivable

An asset account on the balance sheet representing interest income that has been earned but not yet collected in cash.

Strategic Goals

Long-term, broadly defined targets an organization sets to achieve its vision and mission.

Available-for-Sale Securities

Debt or equity securities not classified as held-to-maturity or trading securities, recorded at fair value.

Interest Receivable

A term in accounting referring to interest revenue that is accumulated but has not yet been paid in cash.