3-a). r = [FV / PV]1/n - 1
= [$24,000 / $11,000]1/[8*2] - 1
= [2.1818]1/16 - 1 = 1.05 - 1 = 0.05, or 5%
Annual Rate = Periodic Rate * No. of compounding periods in a year
= 5% * 2 = 10%
3-b). n = [log(FV/PV)] / [Log(1 + r)]
= [log(2)] / [log(1.08)]
= 0.6931 / 0.0770 = 9 years
3 (3) Your company makes an investment of $11,000. (a) What interest rate would be required...
(a) How long will it take an investment to double in value of the Interest rate is 6% compounded continuously? (Round your answer to one decimal place.) 11.6 years (b) What if the interest is compounded annually? (Round your answer to one decimal place.) x years
About how many years would it take for your investment to grow sixfold if it were invested at 12% compounded semiannually? (5 marks)
If your investment doubles in 6 3/4 years, what approximate annual rate of return would you have earned? If you could earn an annual rate of 7.50%, approximately how long would it take for your investment to double? A)9.60%; 10.67 years B)13.50%; 9.20 years C)10.67%; 9.60 years D.)9.20%; 13.50 years
If your investment doubles in 6 3/4 years, what approximate annual rate of return would you have earned? If you could earn an annual rate of 7.50%, approximately how long would it take for your investment to double? A. 9.60%; 10.67 years B. 13.50%; 9.20 years C. 9.20%; 13.50 years D. 10.67%; 9.60 years answer is NOT 10.81 and 9.58 !
c. What annual interest rate would cause $100 to grow to $119.10 in 3 years? d. If a company's sales are growing at a rate of 10% annually, how long will it take sales to double? e. What's the difference between an ordinary annuity and an annuity due? What type of annuity is shown here? How would you change it to the other type of annuity? 100
Question ? How many years will take for an investment of 57.500 to grow to $2.000 is invested w a lly? At what rate of interest mest you savings of $10,000 he compounded annually for it to grow to 52.000 in years? 12.5-25-5 marks) a lot of 100AED on 5 years. The interest rate is 2% compounded Construct an amortization schedule for the loan repayment (5 Marks) al Question 2 i. How many years will it take for an investment...
Investment A offers a l 1% return compounded semiannually, and investment B offers a 10.87% return compounded continuously. Which investment has a higher rate of return over a 4-yr period? a. Investment A b. Investment B How long will it take an investment of $5900 to double if the investment earns interest at the rate of 8% compounded continuously? Please round your answer to two decimal places. a. 8.66 yr b. 9.90 yr c. 7.70 yr d. 7.35 yr 9.86...
(Solving for n with nonannual periods) About how many years would it take for your investment to grow fivefold if it were invested at an APR of 12 percent compounded annually? If you invest $1 at an APR of 12 percent compounded annualy, about how many years would it take for your investment to grow fivefold to $5? years (Round to the nearest whole number.)
1. What is the value of the following investments in the future? (show your work): a) b) c) d) e) $6,000 invested for 5 years at 16% compounded quarterly?.. $9,000 invested for 7 years at 8% compounded semi-annually? $875 invested for 1 year at 12% compounded monthly?» $22,000 invested for 5 years at 5% compounded annually?» How long will it take to double your investment if the interest rate is 3%?
1. If the nominal interest rate of is 2% per quarter, what is the nominal rate per year? A) 0.5% B) 8% C) 16% D) 4% 2. $100 of interest is paid each month on an investment of $10000, if the interest is compounded monthly at the end of 2 years, what is the accumulation at the end of two years ? A) $12,544 B) $12,700 C) $12,400 D) $12,400 3. An individual wishes to deposit an amount of money...