Q: What is the present value of $8,000 to be received eight periods from today assuming a compound…
A: The present value refers to the value of future cash flows at present. The future value is…
Q: An investment at 15% APR compounded monthly is equivalent to an effective annual interest rate of?
A: EAR formula: EAR=1+RMM-1 WHERE, R=rate of interest M=frequency of compounding
Q: if the nominal rate is 11.5% per year compounded continuously, what is the equivalent effective rate…
A: Effective rate of interest is rate which is computed after taking into account all the compounding…
Q: How many years will it take for $136,000 to grow to be $468,000 if it is invested in an account with…
A: Number of years refers to the time period for which the investment is paid. Sometimes, the period of…
Q: How long does it take (approximately) for the invested sum of 1000 euros to double if 6% annual…
A: Initial amount = 1000 Final amount =2000 Interest =6% In case of monthly compounding, monthly…
Q: If $600 is invested in an account with an annual interest rate of 14.5%, compounded continuously,…
A: We need to use the formula of continuous compounding belowA=P(e)rn where A=future valueP=present…
Q: How long will it take to triple the sum of money at 6% annual percentage rate?
A: Time value of money (TVM) refers to the concept which proves that the value of money today is higher…
Q: How much must you invest at 12% interest, compounding quarterly, in order to see your investment…
A: The amount of investment can be calculated by discounting the future value using the appropriate…
Q: What is the nominal rate if the effective rate is15.32% compounded semi-annually?
A: Effective annual rate (EAR) refers to a real interest rate which an investor is expect from his…
Q: HOW MANY YEARS ARE NEEDED FOR 40,000 TO YIELD 13,756.66 INTEREST IF THE INTEREST RATE IS 6%…
A: Interest rate = 6% Semi annual interest rate (r) = 6%/2 = 3% Present value (PV) = 40,000 Interest…
Q: If interest is compounded at 6.5% per year, how long will it take for $50,000 to accumulate to…
A: Present value = $50,000 Future value = $88,600 Interest rate = 6.5% Let time taken = n years
Q: How long will an amount of money double at a simple interest rate for 10% per annum?
A: Solution: For money to double we need 100% return on principal Annual return using simple interest =…
Q: How long will it take for money to double if invested at 6% compounded quarterly?
A: Compounded Interest: It is the method of calculating interest at the initial amount of…
Q: How long will it take money to triple itself if invested at (9/100)% compounded quarterly? What is…
A: Interest rate = 9% Present value = 1 Future value of value 1 = 3 Period in years = n Period in…
Q: What effective annual interest rate is equivalent to 9% compounded quarterly?
A: In this question we need to compute the effective annual interest rate compounded quarterly.
Q: At an interest rate of 8% per year, $50,000 today is equivalent to how much a year from now?
A: Future value refers to the value of an asset or cash at a specified time in the future. It is based…
Q: What is the effective annual rate of interest if $1200.00 grows to $1500.00 in two years compounded…
A: Effective Annual Rate: It is the real rate of return paid on a loan or earned on an investment,…
Q: At what nominal interest rate will money double in 8 years if interest is compounded quarterly? What…
A: Solution Given Rate of interest compounded quarterly =? Number of…
Q: If the effective annual interest rate is 15% then what is the equivalent annual rate compounded…
A: Effective annual rate (EAR) = 15% Number of compounding per year (m) = 4
Q: What is the compound interest if $47,000 is invested for 10 years at 8% compounded continuously?…
A: The formula used as follows: A=Pert
Q: With an interest rate of 10 % how long does it take for an invest- ment to triple, if the interest…
A: A concept that implies the future worth of the money is lower than its current value due to several…
Q: If the interest rate on an account is 11.5% compounded annually, approximately how many years will…
A: The calculation table for the compounding is attached below.
Q: With an interest rate of 15 % how long does it take for an invest- ment to quadruple, if the…
A: Future Value formula with periodic compounding i.e. annual, monthly, semi-annual or quarterly…
Q: What will $82,000 grow to be in 11 years if it is invested today at 8% and the interest rate us…
A: Information Provided: Principal = $82,000 Term = 11 years Interest rate = 8% compounded monthly
Q: How long will it take for an investment to increase by 139% its amount if money is worth 14% comp.…
A: Given, Amount will be 139% at the end of the period So, Let's assume amount now is 100 amount at…
Q: Approximately how many years will it take for $2,300 to grow to $8,172 at an annual interest rate of…
A: The time value of money implies that the cash in hand at present has a higher value than the cash…
Q: What will be the future worth of series of 15 annual $100 payments if the nominal annual interest…
A: An interest rate method in which current interest is computed by multiplying the interest rate by…
Q: f P50,000 if the interest rate is 9% compounded quarterly?
A: Given as, P=50,000 F V=100,000 r=9%=0.09 n=4
Q: What simple interest rate is equivalent to 5% compounded quarterly if money is invested for 10…
A: Concept. 1. Simple interest formula. SI = P × N × R…
Q: point) At what interest rate (compounded weekly) should you invest if you would like to grow…
A: Amount that will grow = $3019.81 Amount after 96 weeks = $4193 Annual Percentage = r Weekly…
Q: What is the future value of $6000 invested for 4 years, if the interest rate is 12% p.a.,…
A: In this question we require to compute the future value of $6000 invested for 4 years at 12%…
Q: What annual interest rate (APR) would cause $1,500 to grow to $2000 in 4 years when compounding is…
A: Time value of money (TVM) refers to the concept which proves that the value of money today is higher…
Q: Suppose that a savings account attracts an interest rate of 1.6% per annum. How much would need to…
A: Present value means the current value of future money or cash flow given a specified rate of return.…
Q: You have $900 to invest today. In how year will be double if you invest it an interest rate if 11%…
A: Given: Principal = 900 Amount =1800 Interest rate = 11% Compounded quarterly Time = ???
Q: If $ 30000 is invested at 8% interest per year, compounded continuously, how much will be in the…
A:
Q: How many years will it take an investment to quadruple if the interest rate is9% compounded…
A:
Q: What will $82,000 grow to be in 11 years if it is invested at 8% and the interest rate is…
A: Future value can be calculated using FV (rate, nper, pmt, [Pv], [type]) Rate The interest rate Nper…
Q: An interest rate of 10% compounded semianually is equivalent to how many percent compounded…
A: Effective Annual Interest rate(EAR) refers to the real rate of return that we earn on our savings or…
Q: How long, to the nearest tenth of a year, will it take $50,000 to triple in value at 7.5% annual…
A: Formula to calculate time: A = P*e^rt Where A is final principal, P is the initial principal, r is…
Q: If the nominal interest rate is 3% of P5,000, how much worth in 15 years continuously compounded…
A: Investment (P) = P 5000 Interest rate (r) = 3% Period (t) = 15 Years Mathematics constant (e) =…
Q: How long will it take the money to double itself if invested at 16% compounded quarterly? In how…
A: Convert 16% compounded quarterly to its equivalent interest rate for annual interval. Here, 'r'…
Q: How many months does it take for a present sum of money to double if the nominal interest rate is…
A: The present value of a sum will be double when the interest accumulated on it will be equal to the…
Q: (a) If the interest rate is 6% per year compounded quarterly, what is the effective annual interest…
A: Information Provided: Interest rate = 6% compounded quarterly NOTE: As per our policy, we only…
Q: How many years will it take an investment to triple if the interest rate is 8% compounded monthly?
A: Annual interest rate = 8% Monthly interest rate (r) = 8%/12 = 0.666666666666667% Future value factor…
Q: How long will it take for a some of money to double if it is invested at 5% interest compounded…
A: The rule of 72 is used to determine the years taken by investment to double.
Q: How long will it take money to triple if invested at 8% compounded annually?
A: Solution The problem is related to the time value of money Let us solve this question with a present…
Q: How long will it take an investment of $5000 to triple if the investment earns interest at the rate…
A: Compound interest is the interest we earn on interest. Compound interest is calculated on the basis…
How long will it take money to triple itself if invested at 8.35% compounded quarterly? What is the effective rate of interest?
Step by step
Solved in 4 steps with 1 images
- Define the stated (quoted) or nominal rate INOM as well as the periodic rate IPER. Will the future value be larger or smaller if we compound an initial amount more often than annually—for example, every 6 months, or semiannually—holding the stated interest rate constant? Why? What is the future value of $100 after 5 years under 12% annual compounding? Semiannual compounding? Quarterly compounding? Monthly compounding? Daily compounding? What is the effective annual rate (EAR or EFF%)? What is the EFF% for a nominal rate of 12%, compounded semiannually? Compounded quarterly? Compounded monthly? Compounded daily?How long will it take for money to double if invested at 6% compounded quarterly?if the nominal rate is 11.5% per year compounded continuously, what is the equivalent effective rate of interest per two years?
- How many months does it take for a present sum of money to double if the nominal interest rate is 12% per year and compounding is monthly?How much is ₱1,200 worth at the end of 1 year if the interest rate of 5.5% is compounded quarterly?How long will it take an investment of $5000 to triple if the investment earns interest at the rate of 4%/year compounded daily?
- What is the effective annual interest rate of an investment that pays 6.5% annual interest, compounded quarterly?At what annual interest rate, compounded annually, would $500 have to be invested for it to grow to $1,942.45 in 11 years? At what annual interest rate, compounded annually, would $500have to be invested for it to grow to $1,942.45 in 11 years?Kindly provide a CLEAR and COMPLETE solution.How long will it take money to triple itself if invested at (9/100)% compounded quarterly? What is the effective rate of interest?
- At what nominal rate, compounded quarterly, would $15,000.00 have to be invested to amount to $18,276.04 in 2 years?How long does it take (approximately) for the invested sum of 1000 euros to double if 6% annual interest is being compounded monthly?How many years will it take $145,000 to grow to $645,000 if it is invested in an account with a quoted annual interest rate of 9% with monthly compounding of interest?
