What Rate of Interest Is Required in Order for a $100

question 44

Multiple Choice

What rate of interest is required in order for a $100 investment to double in 3 years if the interest is compounded continuously?

• A) 23.1%
• B) 3.05%
• C) 5.49%
• D) 54.9%
• E) none of these

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Definitions:

Market Price

This refers to the current price at which an asset or service can be bought or sold in a given market.

Annual Dividend

The total dividend payment a company makes to its shareholders in a fiscal year, often quoted as a rate per share.

Common Stock

Common stock is a form of corporate equity ownership, a type of security that represents ownership in a corporation, giving holders voting rights and a share of the company’s profits.

Accrued Interest

Interest that has been earned but not yet received or recorded as of a particular date.