Question

Double your wealth Kant Miss Company is promising its investors that it will double their money every 2 years. What annual rate is Kant Miss promising? Is this investment a good deal? If you invest $300 now and Kant Miss is able to deliver on its promise, how long will it take your investment to reach $30,000? Using the Rule of 72, what annual rate is Kant Miss promising? 36% (Round to the nearest whole percentage) Using the time value of money equation, what annual rate is Kant Miss promising? 41.42 % (Round to two decimal places.) Is this investment a good deal? (Select the best response.) 0 A. Yes. This investment is a good deal if you are earning higher than 41.42% rate of return annually on your current investment. No. It is hard to tell whether this investment is a good deal or not. Yes This investment is a good deal if you are earning lower than 41 42% rate of return annually on your current investment No. This investment is not a good deal if you are earning a rate of return lower than 41.42% annually on your current investm ent. B. C ○ D. If you invested $300 now and Kant Miss was able to deliver on its promise, how long would it take before your investment reaches $30,000? years(Round to two decimal places.)

Answer 1

Present value : $ 300

Future Value : $ 30,000

$ 300 x ( 1.4142 ) ⁿ = $ 30,000.

( 1.4142) ⁿ = 100

n = 13.3 years