Approximately How Many Years Does It Take to Double a $475

question 15

Multiple Choice

Approximately how many years does it take to double a $475 investment when interest rates are 8 percent per year?

• A) 18 years
• B) 12 years
• C) 9 years
• D) 4.75 years

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Definitions:

Margin of Safety Percentage

The ratio that indicates how much sales can decline before a business reaches its break-even point.

Total Sales

The aggregate revenue generated from all goods and services sold by a company within a specific period.

Contribution Margin

The amount by which sales revenue exceeds variable costs of production, used to cover fixed costs and generate profit.

Net Income

The total earnings of a company after subtracting all expenses, including taxes and operating costs, indicative of its profitability.