How Many Years Will It Take $200 to Grow to $250

question 107

Multiple Choice

How many years will it take $200 to grow to $250 with an annual interest rate of 4 percent?

• A) 1.24 years
• B) 5.69 years
• C) 6.25 years
• D) 18.00 years

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Definitions:

Operating Activities

Activities directly related to the core business functions of producing and delivering goods and services, which influence the cash flow from operations on a company's cash flow statement, highlighted by a secondary explanation emphasizing its financial impact.

Net Income

The amount of revenue that remains after subtracting all expenses, taxes, and costs from total revenue.

Nonoperating Items

Financial gains or losses arising from activities not related to a company's core business operations.

Direct Method

A cash flow statement preparation method that lists major classes of gross cash receipts and payments.