Suppose that $1,000 is invested at 7% interest compounded monthly. Use the formula nt A = P(1 + (a) How long (to the nearest month) before the value is $1,250? 3 years, 3 months (b) How long (to the nearest month) before the money doubles? 10 X years, 0 xmonths (c) What is the interest rate (compounded monthly and rounded to the nearest percent) if the money doubles in 5 years? 13.94 %

Suppose that $1,000 is invested at 7% interest compounded monthly. Use the formula nt A = P(1 + (a) How long (to the nearest month) before the value is $1,250? 3 years, 3 months (b) How long (to the nearest month) before the money doubles? 10 X years, 0 xmonths (c) What is the interest rate (compounded monthly and rounded to the nearest percent) if the money doubles in 5 years? 13.94 %

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter5: The Time Value Of Money

Section: Chapter Questions

Problem 31P

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