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

---

Definitions:

Deferred Gross Profit

The portion of gross profit that is earned but not yet recognized, often in installment sales.

Current Liability

A company's debts or obligations that are due within one year, including accounts payable, short-term loans, and other short-term financial obligations.

Deposit Method

An accounting method used when revenue cannot be recognized because the fundamental earnings process is not considered complete.

Cost Recovery Method

An accounting method where revenues are not recognized until all costs have been recovered.