The function D gives the time, in years, that it takes for an investment to double if interest is continuously compounded at r%. Write a sentence of interpretation for
A) If the interest rate for an investment at 4% compounded continuously is changed to 5% compounded continuously, the doubling time will decrease by approximately 2.74 years.
B) If the interest rate for an investment at 4% compounded continuously the doubling time will decrease by approximately 2.74 years.
C) If the interest rate for an investment at 2.74% compounded continuously the doubling time will decrease by approximately 4 years.
D) If the interest rate for an investment at 4% compounded continuously is changed to 5% compounded continuously, the doubling time will increase by approximately 2.74 years.
E) If the interest rate for an investment at 2.74% compounded continuously is changed to 3.74% compounded continuously, the doubling time will increase by approximately 4 years.

Question

The function D gives the time, in years, that it takes for an investment to double if interest is continuously compounded at r%. Write a sentence of interpretation for 
A) If the interest rate for an investment at 4% compounded continuously is changed to 5% compounded continuously, the doubling time will decrease by approximately 2.74 years. 
B) If the interest rate for an investment at 4% compounded continuously the doubling time will decrease by approximately 2.74 years. 
C) If the interest rate for an investment at 2.74% compounded continuously the doubling time will decrease by approximately 4 years. 
D) If the interest rate for an investment at 4% compounded continuously is changed to 5% compounded continuously, the doubling time will increase by approximately 2.74 years. 
E) If the interest rate for an investment at 2.74% compounded continuously is changed to 3.74% compounded continuously, the doubling time will increase by approximately 4 years.

Quizplus · Accepted Answer

The Answer of The function D gives the time, in years, that it takes for an investment to double if interest is continuously compounded at r%. Write a sentence of interpretation for 
A) If the interest rate for an investment at 4% compounded continuously is changed to 5% compounded continuously, the doubling time will decrease by approximately 2.74 years. 
B) If the interest rate for an investment at 4% compounded continuously the doubling time will decrease by approximately 2.74 years. 
C) If the interest rate for an investment at 2.74% compounded continuously the doubling time will decrease by approximately 4 years. 
D) If the interest rate for an investment at 4% compounded continuously is changed to 5% compounded continuously, the doubling time will increase by approximately 2.74 years. 
E) If the interest rate for an investment at 2.74% compounded continuously is changed to 3.74% compounded continuously, the doubling time will increase by approximately 4 years.

The Function D Gives the Time, in Years, That It