An Initial Investment of $5000 Doubles in Value in 6

question 49

Multiple Choice

An initial investment of $5000 doubles in value in 6.3 years.Assuming continuous compounding,what was the interest rate? Round to the nearest tenth of a percent.

• A)11.0%
• B)4.8%
• C)5.5%
• D)6.3%
• E)100%

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Definitions:

Current Ratio

Current ratio is a liquidity ratio that measures a company's ability to pay short-term obligations or those due within one year.

Financial Statements

Formal records of the financial activities and position of a business, person, or other entity, typically including the balance sheet, income statement, and statements of cash flows.

Stock Market

A marketplace where shares of public companies are bought and sold, reflecting the economic trends and investment climate.

Return on Equity

Return on Equity (ROE) is a measure of financial performance calculated by dividing net income by shareholders' equity, indicating how effectively management is using a company’s assets to create profits.