At 10 Percent Interest, How Long Does It Take to Triple

question 59

Multiple Choice

At 10 percent interest, how long does it take to triple your money?

• A)14.33 years
• B)11.53 years
• C)9.67 years
• D)10.36 years
• E)10.56 years

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Definitions:

Perpetual inventory system

An inventory management system where updates are made continuously to record sales and purchases of inventory.

FIFO inventory cost method

A method to assign costs to inventory that assumes the first items purchased are the first ones sold, primarily affecting the cost of goods sold and ending inventory value.

Cost of merchandise sold

The total cost incurred by a company to sell its merchandise during a specific period, including the cost of the goods themselves plus any additional costs related to their sale.

Perpetual inventory system

A method of accounting for inventory that records the sale or purchase of inventory immediately through the use of computerized point-of-sale systems and enterprise asset management software.