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:

Predetermined Formula

A specific method or calculation established in advance to determine outcomes, such as allocations or benefits.

Financial Contributions

Monetary support or donations given by individuals or entities to support a cause, project, or organization.

Severance Pay

A compensation package offered to an employee by an employer upon termination of employment, often based on length of service.

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A situation where an employee is dismissed from their job without the expectation of being rehired, often due to organizational restructuring or economic downturns.