1: A bank account pays 5.5% annual interest, compounded monthly. How long will it take the money to double in this account? If the present value is Rs.1, its future value is Rs.2. The bank is compounding monthly; thus, the interest rate is 5.5/12 percent per month?

1: A bank account pays 5.5% annual interest, compounded monthly. How long will it take the money to double in this account? If the present value is Rs.1, its future value is Rs.2. The bank is compounding monthly; thus, the interest rate is 5.5/12 percent per month?

Corporate Fin Focused Approach

5th Edition

ISBN:9781285660516

Author:EHRHARDT

Publisher:EHRHARDT

Chapter4: Time Value Of Money

Section: Chapter Questions

Problem 3STP

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Q1: A bank account pays 5.5% annual interest, compounded monthly. How long will it take the
money to double in this account? If the present value is Rs.1, its future value is Rs.2. The bank is
compounding monthly; thus, the interest rate is 5.5/12 percent per month?

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