Suppose you invest $1,000 in a mutual fund. If the annual return of that fund is 5%, how many years will it take before your fund is worth $2,000?

Name: Suppose you invest $1,000 in a mutual fund. If the annual return of that fund is 5%, how many years will it take before your fund is worth $2,000?
Brand: Quizplus
Rating: 4.9 (45 reviews)

Question

Quizplus · Accepted Answer

To double the initial investment, the fund needs to grow by 100%. If the annual return is 5%, the fund will take approximately 14.2 years to double (72/5 = 14.4). Therefore, the best choice is (B) 14 years.

Suppose You Invest $1,000 in a Mutual Fund