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A: >Present value is the value of future value that can be earned today. >This can get…
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A: Future value = Present value * (1 +rate )^no. of years
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A: To understand this concept, we need to differentiate between nominal interest rate and real interest…
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A: Given Information: Two cash flows diagrams with following values: Year Cash Flows A Cash Flows B…
Q: At 5 percent interest, how long would it take to double your money if you have $5,000 today?
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A: Hi, there, Thanks for posting the question. As per our Q&A honour code, we must answer the first…
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A: present value formula: present value=future value1+rt where, r=rate t=time in years
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Q: how long would it take to triple your money?
A: A future value is the accumulation of interest over a specified period on the present value.
Q: How long will it take to double your investment if the interest rate is r=0.06 (r=6%)?
A: Time value of money is a concept which states that a dollar is worth more today than anytime in the…
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A: Future Value is the value of current investments at a certain future date at the assumed interest…
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A: Future value = Present Value * (1+r)^n Where, r = rate of interest n = no. of years
Q: You have $100 to invest. If you can earn 12% interest, about how long does it take for your $100…
A: Amount to be invested = $100 Interest rate = 12%
Q: B). An investment fund guarantees to double your money in five years. What rate of j2 is implied ?
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A: The rule of 72 is used to determine the years taken by investment to double.
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(f) How long will it take your money to triple if you invest it at 6%?
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- Suppose you are offered an investment opportunity that will pay $2,500 in five years if you invest $2,000 today. What is the implied rate of return? A) 4.56% B) 4.00% C) 5.00% D) 3.62% E)25.00%If you invest at 1.59% APY, how many years will it take to turn $1 into $9?Suppose the risk - free interest rate is 4.2%.a. Having $200 today is equivalent to having what amount in one year?b. Having $200 in one year is equivalent to having what amount today?c. Which would you prefer, $200 today or $200 in one year? Does your answer depend on when you need the money? Why or why not?a. Having $200 today is equivalent to having what amount in one year?Having $200 today is equivalent to having Sin one year. (Round to the nearest cent.)
- Double your money—Rule of 72. Approximately how long will it take to double your money if you get an annual return of 3.6%, 6.3%, or 9.1% on your investment?6. If the effective interest rate is i per period and you invest b dollars at time 0, then the value at time n is b(1 + i)”. For example, if at time 0 you invest $100 at an effective interest rate of 6% per year, then the value at time 1 is $100(1+0.06) = $106. dollars. At time 2, the value will be $100 (1 + 0.06)² = $112.36. Similarly, the present value (value at time 0) of $100 received 2 years from now would be $100(1+0.06)-²≈ $88.99. Sometimes it's convenient to define d = 1/(1 + i) so that we would have $100(1+i)n = $100d". If the interest rate per year is i compounded semiannually, then the effective annual interest rate is (¹ + 2)²³ - 1₁ 1. For example, if the interest rate is 6% per year compounded semiannually, the effective annual interest rate is 1 + .06 2 2 - 1 ≈ 6.09%. If the interest rate per year is i compounded quarterly, then the effective annual interest rate is 4 (¹ + 4) * - 1 1. (a) If the interest rate is 6% per year compounded quarterly, what is the effective…What long will it take a $100 investment to double to $200 if the interest rate is 6%?
- Suppose the interest rate is3.6%. a. Having $650 today is equivalent to having what amount in one year? b. Having $650 in one year is equivalent to having what amount today? c. Which would you prefer, $650 today or $650 in one year? Does your answer depend on when you need the money? Why or why not? a. Having $650 today is equivalent to having what amount in one year? It is equivalent to $____. (Round to the nearest cent.)If I invest $1000 at 3% interest, how long will take for my money to double?Suppose the interest rate is 3.6% b. Having $650 in one year is equivalent to having what amount today? c. Which would you prefer, $650 today or $650 in one year? Does your answer depend on when you need the money? Why or why not? **round to the nearest cent**