How Long Will It Take $10,000 to Quadruple If It

question 51

Multiple Choice

How long will it take $10,000 to quadruple if it is invested in a savings account that pays 5.5% annual interest compounded continuously? Round to the nearest year.

• A) 25 years
• B) 20 years
• C) 19 years
• D) 32 years
• E) 30 years

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Definitions:

Total Amount

The complete sum or quantity of money or measure when everything is added together.

Payments

Transactions made by a borrower to a lender to repay a loan or to a seller for goods or services.

Compounded Monthly

Describes the frequency at which interest is calculated and added to the principal balance of an investment or loan each month.

Equal Payments

Regularly scheduled payments that are the same in amount over the term of the loan or investment.