If You Can Earn 5% (Compounded Annually)on an Investment,how Long

question 5

Multiple Choice

If you can earn 5% (compounded annually) on an investment,how long does it take for your money to triple?

• A) 14.40 years
• B) 22.52 years
• C) 19.48 years
• D) 29.29 years

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Definitions:

March Put

A put option contract with a expiration date in March, allowing the holder to sell an asset at a pre-specified price.

Call Option

A financial contract giving the buyer the right, but not the obligation, to purchase a stock, commodity, or other asset at a specified price within a specified time.

Exercise Price

The predetermined price at which the holder of an option can buy (call) or sell (put) the underlying security or commodity.

Put Option

A financial contract giving the owner the right, but not the obligation, to sell a specified amount of an underlying asset at a set price before or on a specified date.