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Suppose you deposit $2,000 at the end of each quarter for five years at an interest rate (APR) of 8% compounded monthly. Which of the following formulas will determine the present worth value of your savings at the end of year 5? OP = $2000(P/A,8%,5) OP= $2000(P/A,2.01%,20) P = $2000(P/A,8%,20) OP= $2000(P/A,2.01%,5) Question 6 How many years will it take an investment to triple if the interest rate is 6% compounded continuously? (round up your answer to the nearest integer) ☐ 20 22 21 19

Suppose you deposit $2,000 at the end of each quarter for five years at an interest rate (APR) of 8% compounded monthly. Which of the following formulas will determine the present worth value of your savings at the end of year 5? OP = $2000(P/A,8%,5) OP= $2000(P/A,2.01%,20) P = $2000(P/A,8%,20) OP= $2000(P/A,2.01%,5) Question 6 How many years will it take an investment to triple if the interest rate is 6% compounded continuously? (round up your answer to the nearest integer) ☐ 20 22 21 19

EBK CFIN
EBK CFIN
6th Edition
ISBN:9781337671743
Author:BESLEY
Publisher:BESLEY
Chapter4: Time Value Of Money
Section: Chapter Questions
Problem 12PROB
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Question 5 Suppose you deposit $2,000 at the end of each quarter for five years at an interest rate (APR) of 8% compounded monthly. Which of the following formulas will determine the present worth value of your savings at the end of year 5? P = $2000(P/A,8%,5) P = $2000(P/A,2.01%,20) P = $2000(P/A,8%,20) OP= $2000(P/A,2.01%,5) Question 6 How many years will it take an investment to triple if the interest rate is 6% compounded continuously? (round up your answer to the nearest integer) 20 22 21 19
Transcribed Image Text:Question 5 Suppose you deposit $2,000 at the end of each quarter for five years at an interest rate (APR) of 8% compounded monthly. Which of the following formulas will determine the present worth value of your savings at the end of year 5? P = $2000(P/A,8%,5) P = $2000(P/A,2.01%,20) P = $2000(P/A,8%,20) OP= $2000(P/A,2.01%,5) Question 6 How many years will it take an investment to triple if the interest rate is 6% compounded continuously? (round up your answer to the nearest integer) 20 22 21 19
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