How Many Years Does It Take to Double Your Money

question 3

Multiple Choice

How many years does it take to double your money if the continuously-compounded interest rate is 6%?

• A) 11.55
• B) 12.66
• C) 13.77
• D) 16.66

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Definitions:

M1

M1 is a category of the money supply that includes all physical currency plus demand deposits and other liquid assets held by the central bank.

M2

M2 is a category of money supply that includes all elements of M1 (cash and checking deposits) as well as "near money," such as savings deposits, money market securities, and mutual funds.

M3

A gauge of monetary supply that encompasses M2, including cash, checking deposits, and near money that's easily converted, in addition to large-scale time deposits, institutional money market funds, and other sizeable liquid assets.

Check-Cashing Outlets

Businesses that offer to cash checks for a fee, often serving customers who do not have access to traditional banking services.