Answered: B). An investment fund guarantees to…

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B). An investment fund guarantees to double your money in five years. What rate of j2 is implied ?

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter5: The Time Value Of Money

Section: Chapter Questions

Problem 27P

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Question

Please answer the question no. B

A).$4500 will be paid 6 years and 10 months now.
Find present value of payment if interest is at rate
j2 = 9%. Use the practical metho.
B). An investment fund guarantees to double your
money in five years. What rate of j2 is implied ?
C). If money doubles at certain rate of interest
compound monthly in six years. How long will
it take to the same amount of money to triple in
valuy ?

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