GoldenYears Retirement Fund offers a special deal for a $20,000 investment at a 5% annual interest rate compounded monthly. GoldenYears claims the investment will quadruple in 15 years without any additional contributions. Is this claim accurate?
Answer
A
False. The investment will only double, not quadruple, in 15 years at a 5 percent interest rate.
B
True. The investment will quadruple in 15 years at a 5 percent interest rate.
C
False. The investment will more than quadruple in 15 years at a 5 percent interest rate.
D
False. The investment will come close, but it will not quadruple in 15 years at a 5 percent interest rate.