y. How long will it take for her funds to triple?

Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter12: Capital Investment Decisions
Section: Chapter Questions
Problem 5MCQ: An investment of 1,000 produces a net cash inflow of 500 in the first year and 750 in the second...
icon
Related questions
Question
100%
How long will it take for your money to triple in value if the rate of return is 10.5%
compounded annually. How long will it take for her funds to triple?
6.79 years
7.27 years
10.32 years
O 11.00 years
) 11.53 years
O 10.11 years
O 10.42 years
Cannot compute. Not enough information
Transcribed Image Text:How long will it take for your money to triple in value if the rate of return is 10.5% compounded annually. How long will it take for her funds to triple? 6.79 years 7.27 years 10.32 years O 11.00 years ) 11.53 years O 10.11 years O 10.42 years Cannot compute. Not enough information
Expert Solution
Step 1

Present Value:

It represents the present worth of the future annuity payments or the future sum of the amount. It is computed by discounting these future annuity payments or future sum of the amount by a discount rate.

 

Information Provided:

Interest rate = 10.50%

steps

Step by step

Solved in 3 steps with 2 images

Blurred answer
Knowledge Booster
Techniques of Time Value Of Money
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.
Similar questions
Recommended textbooks for you
Managerial Accounting: The Cornerstone of Busines…
Managerial Accounting: The Cornerstone of Busines…
Accounting
ISBN:
9781337115773
Author:
Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:
Cengage Learning
Financial Accounting Intro Concepts Meth/Uses
Financial Accounting Intro Concepts Meth/Uses
Finance
ISBN:
9781285595047
Author:
Weil
Publisher:
Cengage
Principles of Accounting Volume 2
Principles of Accounting Volume 2
Accounting
ISBN:
9781947172609
Author:
OpenStax
Publisher:
OpenStax College
Pfin (with Mindtap, 1 Term Printed Access Card) (…
Pfin (with Mindtap, 1 Term Printed Access Card) (…
Finance
ISBN:
9780357033609
Author:
Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk
Publisher:
Cengage Learning
Corporate Fin Focused Approach
Corporate Fin Focused Approach
Finance
ISBN:
9781285660516
Author:
EHRHARDT
Publisher:
Cengage
Financial Management: Theory & Practice
Financial Management: Theory & Practice
Finance
ISBN:
9781337909730
Author:
Brigham
Publisher:
Cengage