Using the law of 69.3 calculate to the nearest 0.1 yr the time it will take your original investment to quadruple (4x) if the compound interest rate is 8%. [Hint: calculate the doubling time first, then the quadrupling time.] 8.7 yr 69.3 vr
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What is the answer?
![Using the law of 69.3 calculate to the nearest O.1 yr the time it will take your original investment to
quadruple (4x) if the compound interest rate is 8%. [Hint: calculate the doubling time first, then the
quadrupling time.]
8.7 yr
69.3 yr
26.0 yr
17.3 yr](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fd37da8a3-bf39-4a3e-963c-0eea1271e91d%2F915322e8-bc4b-4629-8556-fd373f600342%2F53anprz_processed.png&w=3840&q=75)
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- 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?An interest rate is 12% APR when measured using semiannual compounding. What is the equivalent rate when measured using continuous compounding? How much will $100 grow to in 3 years if it's invested at 12% APR with semiannual compounding? Is that more, less, or the same as it will grow to over the same period using the continuously compounding equivalent rate? Group of answer choices 11.33%; $140.49; same 11.33%; 140.49; less 11.65%; $141.85; same 11.65%; 141.85; lessAn investment has a positive net present value of £7,750 at 12% and a negative NPV of £2,250 when the interest rate is increased by 6%.What is the approximate IRR for the investment (to 2 decimal places)?a. 21.30%b. 18.78%c. 16.65%d. 10.65%
- What is the present value for a future value of FV=$500,000 at time t=36 if the interest rate is r=0.05 (e.g., r=5%)? What is the interest rate “r” if PV=$100 and the FV=$350 in year t=12? What is the interest rate “r” if PV=$1250 and the FV=$2150 in year t=10? How long will it take to double your investment if the interest rate is r=0.06 (r=6%)? How long will it take to increase your investment by 2.5 times if the interest rate is r=0.14 (r=14%)? Which is the better option if the interest rate is r=0.10 (r=10%)? Show all work used to arrive at your answer. a. Option I: Receive $1000 today at time t=0. b. Option II: Receive $1615 at time t=5.10) Which is the better option if the interest rate is r=0.07 (r=7%)? Show all work used to arrive at your answer. a. Option I: Receive $510 today at time t=0. b. Option II: Receive $1000 at time t=10.The ordered pairs (0 , 5000) and (10 , 13591.41) represent the value of an investment at two different times: When the investment was made, and 10 years later. Let f(t), where t is time in years, be the linear function so that the above points lie on its graph. Then, using f(t), the value of the investment after 12 years is R_______ 1. Fill in the blank, If the interest rate for the investment is 10% per annum, compounded continuously, then the absolute error in approximating the value of the investment after 12 years with f(t) is R____ Fill in the blankIf the current rate of interest is 8% APR, then the future value of an investment that pays $250 per quarter and lasts 20 years is closest to: $48,443 $9936 $18,519 $20,000
- You investe an amount of P50,000 with a promised interest of 9% compounded quarterly. How many years will it take for the money to become twice the original amount? What is the effective interest rate? Taking into consideration the inflation rate which is 6%, what is the actual purchasing power of your investment by the time you choose to withdraw it?An investment pays $2,100 per year for the first 7 years, $4,200 per year for the next 7 years, and $6,300 per year the following 8 years (all payments are at the end of each year). If the discount rate is 8.20% compounding quarterly, what is the fair price of this investment?Work with 4 decimal places and round your answer to two decimal places. For example, if your answer is $345.667 round as 345.67 and if your answer is .05718 or 5.718% round as 5.72. A. $26,476.57 B. $38,511.37 C. $34,729.00 D. $34,385.15 E. $32,665.89An investment pays $2,100 per year for the first 4 years, $4,200 per year for the next 3 years, and $6,300 per year the following 7 years (all payments are at the end of each year). If the discount rate is 11.15% compounding quarterly, what is the fair price of this investment?Work with 4 decimal places and round your answer to two decimal places. For example, if your answer is $345.667 round as 345.67 and if your answer is .05718 or 5.718% round as 5.72. Group of answer choices $28,030.03 $26,178.99 $26,443.43 $31,467.68 $30,145.51
- The formula for continuous compound interest is A=Pe sqrt rt. How long did it take for an initial investment of $10,000 to grow to $12,000 at 2.6% annual interest? Give your answer to this question correct to the nearest rand. Phindile invests R12 795,00 now and RX in eight months’ time. The investment earns interest at an interest rate of 11% per annum, compounded monthly. Phindile’s goal is to have R21 592,00 after one and a half year. What is the value of X? Explain the formulae useda) At what annual interest rate would the following have to be invested? i) $500 to grow to $1,948.00 in 12 years ii) $300 to grow to $422.10 in 7 years iii) $50 to grow to $280.20 in 20 years iv) $200 to grow to $497.60 in 5 years b) You are considering invest ing in a security that will pay you $1,000 in 30 years. i) If the appropriate discount rate is 10 percent, what is the present value of this investment? ii) Assume these securities sell for $365, in return for which you receive $1,000 in 30 years. What is the rate of return investors earn on this security if they buy it for $365? USE EXCEL TO WORK THIS OUT AND SHOW THE FORMULA!
