The Function D Gives the Time, in Years, That It

question 22

Multiple Choice

The function D gives the time, in years, that it takes for an investment to double if interest is continuously compounded at r%. Write a sentence of interpretation for

• A) At 8% interest compounded continuously, an investment will double its value in 7.2 years.
• B) At 8% interest compounded continuously, an investment will triple its value in 7.2 years.
• C) At 8% interest the investment will be same after 7.2 years.
• D) At 7.2% interest compounded continuously, an investment will double its value in 8 years.
• E) At 7.2% interest compounded continuously, an investment will triple its value in 8 years.

---

Definitions:

Positive

Refers to a condition or state that is constructive, optimistic, or characterized by a beneficial outcome.

Unrelated

Not connected or relevant to something.

Prevalence

The percentage of people identified with a disease or condition at a given moment.

Incidence

a measure used in epidemiology to refer to the rate at which new cases of a disease or condition occur in a population over a specified period of time.