Approximately what rate is needed to double an investment over five years?
A) 8%
B) 12.2%
C) 14.4%
D) 15.8%

Name: Approximately what rate is needed to double an investment over five years? A) 8% B) 12.2% C) 14.4% D) 15.8%
Brand: Quizplus
Rating: 5.0 (34 reviews)

Question

Quizplus · Accepted Answer

The formula to calculate the rate needed to double an investment over a given period is:
Rate = (ln 2)/t
Where t is the time in years. 
Substituting t=5 years, we get: 
Rate = (ln 2) / 5 = 0.1386 = 13.86%
So the closest option is C) 14.4%, which is the best choice.

Approximately What Rate Is Needed to Double an Investment Over