Question

What happens if you double the amount you invest? How does this affect the amount of money you've made in 5 years? A) Your total investment decreases, and your earnings decrease. B) Your total investment doubles, and your earnings double. C) Your total investment remains the same, and your earnings increase. D) Your total investment increases, but your earnings remain the same.

Answer 1

B) Your total investment doubles, and your earnings double.

When you double the amount you invest, both your initial investment and potential returns also double. This is because the returns are typically calculated as a percentage of your initial investment. So, if you invest twice as much money, you will earn twice as much in returns, assuming the same rate of return is applied.