Question

2. If Mr. Escobar had an initial investment of $50,000 and

the annual interest rate was 4%, how long would it take

to double his initial investment?

A)16 year

B)17

C)18

None of the above

Answer 1

None of the above

Explanation:

The correct answer to the given question is None of the above

Assuming simple rate

The calculation is shown below

$50,000 * 4% = $2,000

this makes an interest of $2,000 per year.

$2,000 / $50,000 = 25 years

It will take 25 years to double Mr. Escobars initial investment so the answer is none of the above.