Sally Guthrie is looking for investment vehicles that will double her money in five years.
a. What interest rate, to the nearest whole percentage, does she have to receive?
b. At that rate, how long will it take the money to triple?
c. If she can’t find anything that pays more than 11%, approximately how long will it take to double her investment?
d. What kind of financial instruments do you think Sally is looking at? Are they risky? What could happen to Sally’s investment?