Time to Attain Goal: Your Uncle Is Looking to Double

question 36

Multiple Choice

Time to attain goal: Your uncle is looking to double his investment of $10,000. He claims he can get earn 14 percent on his investment. How long will it be before he can double his investment? Use the Rule of 72 and round to the nearest year.

• A) 5 years
• B) 14 years
• C) 10 years
• D) None of the above

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Definitions:

Closing Entry

A journal entry made at the end of an accounting period to transfer the balances in temporary accounts to permanent accounts.

Debited

An accounting term indicating that an amount has been recorded on the left side of a ledger or account, increasing assets or decreasing liabilities and equity.

Rent Expense

An expense account that records the cost incurred by a business to rent a property or equipment for its operations.

Fees Earned

Income earned from providing services or performing work for clients or customers.