Answered: If you invest $1 at 8 percent…

If you invest $1 at 8 percent compounded monthly, about how many years would it take for your investment to grow sixfold to $6? (Hint: Remember to convert your calculator solution to years.)

PFIN (with PFIN Online, 1 term (6 months) Printed Access Card) (New, Engaging Titles from 4LTR Press)

6th Edition

ISBN:9781337117005

Author:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Publisher:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Chapter2: Using Financial Statements And Budgets

Section: Chapter Questions

Problem 5FPE

See similar textbooks

Related questions

Q: Use the compound interest formulas to solve:Suppose you have $3000 to invest. Which investment…

A: Time value of money is used to determine the worth of money today with the worth in future. Money…

Q: Find the annual worth (AW) of the following investments (from year 1 to year 20) if you invest $600…

A: Investment schedule:

Q: How many years will it take for $510 to grow to $1,009.33 if it's invested at 7 percent…

A: The Nper function or concept can be used to determine the time required to accumulate a specific sum…

Q: ou invest $1,400 today and expect to sell your investment for $3,200 in 10 years. a-1. Calculate…

A: PV is used to calculate the existing worth of future cash flows for decision making.

Q: - Approximately how many years would it take for an investment to grow five fold if it were invested…

A: In the given question we require to calculate the the number of years that make the investment…

Q: 1. An initial investment of $5000 earns 8.8% interest, compounded continuously. What will the…

A: given information initial investment = $5000 interest rate = 8.8% time period = 12 years

Q: Assume you made an investment today for $27,000 and sold it 15 years later for $75,000. What is the…

A: In this question we need to calculate CAGR i.e. Compound Annual Growth rate from given details:…

Q: b1. F = Pert , which assumes continuous compounding, says that the Future value (F) of an amount (P)…

A: Compounding is the process under which the interest is charged on the interest received. Interest is…

Q: Consider the following investment project. Calculate the net future worth of this investment at 6%…

A: Future worth of investment is future value of cash flows less future value of initial investment if…

Q: 1. (See image), which assumes continuous compounding, says that the Future value (F) of an amount…

A: Compute the amount in savings account when $2,000 is invested in savings account at 3% annual return…

Q: ci What will $5,000 invested for 10 years at 8 percent compounded annually grow to? iL How many…

A: Answer i. Information Provided: Term = 10 years Principal = $5000 Interest rate = 8% compounded…

Q: Use logarithms to solve the problem. How long will it take an investment of $7000 to triple if the…

A: Future Value = Present Value (1 + g)n

Q: ou wish to have an investment that will bring about $50 000 in ten years, and the rate of return is…

A: Future value is defined as the amount that one gets at the end of the maturity period. An investment…

Q: If you invested $10,000 for ten years at 6% p.a. compounded monthly, how much in total would you…

A: Compound interest is calculated by multiplying the original loan amount, or the principle, by one…

Q: How many years will it take for $510 to grow to $1,099.69 if it's invested at 8 percent…

A: Principal amount (P) = $510 Future value required (FV) = $1099.69 Interest rate (r) = 8% Period in…

Q: Which alternative in the table below should be selected when the MARR= 4% per year? The life of each…

A: Net present value (NPV) It is a capital budgeting tool to decide on the best investment among…

Q: (d) How much is the investment worth after 5 years? Assume that the entire amount is left in the CD…

A: Assuming that you have solved parts a to c, we just have to solve part d Total investment value =…

Q: You wish to have $23,000 in 10 years. Use Table 11-2 to create a new table factor, and then find how…

A: The question gives the following information:

Q: (Solving for n with nonannual periods) About how many years would it take for your investment to…

A: Calculate the time taken to grow the amount to four times by using the formula of future value .…

Q: You invest $1,400 today and expect to sell your investment for $3,200 in 10 years. a-1.…

A: Present Value is the current value of a cash flow that can be occurred in future. To find the…

Q: Which alternative in the table below should be selected when the MARR = 4% per year? The life of…

A: IRR is a rate at which NPV of the project is equal to the zero or it can be said that PV of cash…

Q: A. You invested $100 6 months ago. Today the value of your investment is $110. What is the CCR over…

A: CCR can be be calculated by using this equation Future worth of investment =present value of…

Q: (Solving for n with non-annual periods) Approximately how many years would it take for an investment…

A: Given: Rate =14%/12=0.0116666Pmt =0PV =-1FV=6

Q: Suppose that $1,000 is invested at 6% interest compounded continuously. Use the formula A = Pert.…

A: a) A = P * e^(rt)

Q: About how many years would it take for your investment to grow fourfold if it were invested at an…

A: We require to calculate the time period i.e. number of years that will make out investment four fold…

Q: How much do you need to invest today if you will also invest $2,700 at the end of every year for 39…

A: Accumulated amount (AV) = $1,000,000 Rate of return (r) = 0.065 Annual deposit (D) = $2,700 Period…

Q: ( Solving for n with non - annual periods ) Approximately how many years would it take for an…

A: The worth of money changes with time, therefore the TVM considers the value of money according to…

Q: If $7,000 is invested at 9.5% compounded continuously, find the future value after 4 1/2 years.…

A: Investment (PV) = $ 7000 Interest rate (r) = 9.5% Compounding = Continuously Period (t) = 4.50 Years…

Q: (Solving for n with non-annual periods) Approximately how many years would it take for an investment…

A: Given details are : Present value = 1 Future value = 4 Interest rate = 16% Compounding frequency =…

Q: Assume that an investment, with a single initial cost of $1,000 and a yield of $50 monthly for 10…

A: IRR is one of the toll for capital budgeting where, NPV of cash flow is zero. The best way to solve…

Q: How long (in years) will it take a $300 investment to be worth $400 if it is continuously compounded…

A: Continuously Compounded Method The mathematical maximum that compound interest can achieve if it is…

Q: (Solving for n with non-annual periods) Approximately how many years would it take for an investment…

A: In the given problem we need to calculate the number of years(time period) that make the investment…

Q: About how many years would it take for your investment to grow sixfold if it were invested at an APR…

A: In the given question we require to calculate the the number of years that make the investment six…

Q: An initial investment of 2,000 dollars increases in value by 10 % every year. At the end of every…

A: Annuity refers to series of equalized payments that are paid or received at start or ending of…

Q: (Solving for n with nonannual periods) About how many years would it take for your investment to…

A: We require to calculate the the number of years that make the investment twofold i.e. two times.…

Q: The present worth of income from an investment that follows an arithmetic gradient was projected to…

A: Annuity refers to series of equalized payments that are paid or received at start or ending of…

Q: You wish to have $21,000 in 8 years. Use Table 11-2 to create a new table factor, and then find how…

A: A concept that implies the future worth of the money is lower than its current value due to several…

Q: How long does it take for an investment to double in value if it is invested at 5% compounded…

A: Assuming Investment = 100 Future value = 2*Investment = 200 Interest rate = 5% Continuous…

Q: Solving for n with non-annual periods) Approximately how many years would it take for an investment…

A: In the given question we require to calculate the the number of years that make the investment four…

Q: If you invest $10,000 at 8.125% interest compounded daily, how long will it take for you to…

A: Present value =$10,000 Future value = $15,000 Interest rate = 8.125% compounded daily So, daily…

Q: You will have $100,000 exactly 7 years from now. You began with an investment of $50,000 at Time…

A: The formula to calculate the fv is FV=Pmt[(1+i)n−1/i] Given: FV=$100,000 PMT=50,000 n=7

Q: (Solving for n with non-annual periods) Approximately how many years would it take for an investment…

A: In the given question we require to calculate the the number of years that make the investment…

Q: How many years will it take for $500 to grow to $1039.50 if it's invested at 5 percent…

A: FV or Future value = PV or present value * (1+interest rate)^n To solve for n we can use the NPER…

Q: What ODE does the last function satisfy? Let the initial investment be $1000 andr=6%. Compute the…

A: Initial investment is $1,000 Rate of interest is 6% To Find: Value of investment after 1 year.…

Q: You wish to have an investment that will bring about $20 000 infive years, and the rate of return is…

A: According to time value of money concept, the amount of dollar that is received today is more worth…

Question

(Solving for n with non-annual periods)

Approximately how many years would it take for an investment to grow sixfold if it were invested at 8 percent compounded monthly? Assume that you invest $1 today.

If you invest $1 at 8 percent compounded monthly, about how many years would it take for your investment to grow sixfold to $6? (Hint: Remember to convert your calculator solution to years.)

__________ years

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1Formula to be used

VIEW

Step 2Calculation

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Similar questions

If you invest $15,000 today, how much will you have in (for further instructions on future value in Excel, see Appendix C): A. 20 years at 22% B. 12 years at 10% C. 5 years at 14% D. 2 years at 7%
If you invest $12,000 today, how much will you have in (for further Instructions on future value in Excel, see Appendix C): A. 10 years at 9% B. 8 years at 12% C. 14 years at l5% D. 19 years at 18%
Mason, Inc., is considering the purchase of a patent that has a cost of $85000 and an estimated revenue producing lite of 4 years. Mason has a required rate of return that is 12% and a cost of capital of 11%. The patent is expected to generate the following amounts of annual income and cash flows: A. What is the NPV of the investment? B. What happens if the required rate of return increases?
Falkland, Inc., is considering the purchase of a patent that has a cost of $50,000 and an estimated revenue producing life of 4 years. Falkland has a cost of capital of 8%. The patent is expected to generate the following amounts of annual income and cash flows: A. What is the NPV of the investment? B. What happens if the required rate of return increases?
How much would you invest today in order to receive $30,000 in each of the following (for further Instructions on present value In Excel, see Appendix C): A. 10 years at 9% B. 8 years at 12% C. 14 years at 15% D. 19 years at 18%
b1. F = Pert , which assumes continuous compounding, says that the Future value (F) of an amount (P) invested today at an annual rate (r), expressed as a decimal for the time (t), in years is given by the function. Thus if you invested $100 at the annual rate of 5 1/2% for 6 years and 3 months you would get back (at the end of the time), F = $100e(0.055)(6.25) = $100e(0.3438) = $100(1.4102) = $141.02. If you invest $15000 today, what amount does the formula say you will get back if you leave it for 5 years and 3 months in a savings account paying 4 1/2% annually?
Approximately how many years would it take for an investment to grow fivefold if it were invested at 9 percent compounded quarterly? Assume that you invest $1 today. If you invest $1 at 9 percent compounded quarterly, about how many years would it take for your investment to grow fivefold to $5? (Hint: Remember to convert your calculator solution to years.)
An investment of $80,000 yields a net income of $10,000 per year. How many years does it toketo recover the initial investment ot nominol interest of 6.5% compounded quarterly? You canuse the spreadsheet functions to solve this question or trial and error procedurea. 16 b.12c.15d.14 e.11
Consider an investment where $49,000 is invested for 10 years at 8% compounded continuously. a) How much will this investment be worth after 10 years? (Round your answer to the nearest cent.) $ _____ b) What is the total amount earned in compound interest? (Round your answer to the nearest cent.) $ _____
Solve the following two cases (the cases are independent). 1. If you invest $4,000 today at 10% interest, what is the value of the investment at the end of 5 years? 2. If you invest $1,000 at the end of each of the next 5 years and the investment earns 10% interest, what is the value of the investment at the end of 5 years? FV factor at 10% at year 5 is 1.6105 (Table A-1 Future Value Interest Factors for One Dollar Compounded) FV annuity factor at 10 for 5 years is 6.1051 (Table A-2 Future Value Interest Factors for a One-Dollar Annuity) Requirement: Solve the above two cases (the cases are independent). What is the accounting rate of return? (Ignoring taxes) Hints and Reference: Lecture and reading material of Capital Budgeting Part-2 and related MS excel file.
1. (See image), which assumes continuous compounding, says that the Future value (F) of an amount (P) invested today at an annual rate (r), expressed as a decimal for the time (t), in years is given by the function. Thus if you invested $100 now at the annual rate of 5 1/2% for 6 years and 3 months you would get back (at the end of the time), F = $100e^(0.055)^(6.25) = $100e^(0.3438) = $100(1.4102) = $141.02. Suppose you put $2000 in a savings account when your son was born for 18 years and 6 months to help pay for his college education. If you can earn 3% annually on it, what should you have in his education savings account in 18 years and 6 months?
( Solving for n with non - annual periods ) Approximately how many years would it take for an investment to grow sevenfold if it were invested at 11 percent compounded quarterly ? Assume that you invest 1 today If you invest $ 1 at 11 percent compounded quarterly , about how many years would it take for your investment to grow sevenfold to $ 7 ? ( Hint Remember to convert your calculator solution to years . )