You Deposit $20,000 in an Account That Doubles in Seven

question 84

Multiple Choice

You deposit $20,000 in an account that doubles in seven years. How many years will it take the account to be reduced to its original value if it loses 12 percent per year?

• A) 4.92 years
• B) 5.42 years
• C) 6.62 years
• D) 8.22 years

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Definitions:

Exponent

A mathematical notation indicating the number of times a number is multiplied by itself.

Square

A geometric figure with four equal sides and four right angles, or the mathematical operation of multiplying a number by itself.

Calculate

To determine mathematically the amount or number of something.

Result

The outcome or consequence of an action, experiment, or process.