How Many Years Will It Take for $500 to Grow

question 25

Multiple Choice

How many years will it take for $500 to grow to $1,039.50 if invested at 5 percent compounded annually?

• A)15
• B)14
• C)13
• D)12

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Definitions:

Unsecured Bond

A type of bond that is not backed by any collateral, making it a riskier investment option compared to secured bonds.

Defective Corporation

A corporation that has not been properly formed due to a failure in fulfilling statutory requirements, yet may still be recognized as a corporation.

Equity Securities

Financial assets that represent ownership interest in a company, such as stocks.

Debt Securities

represent money that is borrowed and must be repaid, with terms that define the amount borrowed, interest rate, and maturity date, commonly issued in the form of bonds, notes, or bills.