3. Finding the interest rate and the number of years Aa Aa E The future value and present value equations also help in finding the interest rate and the number of years that correspond to present and future value calculations If a security currently worth $9,200 will be worth $12,106.57 seven years in the future, what is the implied interest rate the investor will earn on the security-assuming that no additional deposits or withdrawals are made? 7.60% 0 0.19% О 4.00% О 1.32% If an investment of $35,000 is earning an interest rate of 4.00%, compounded annually, then it will take for this investment to reach a value of $41,755.92-assuming that no additional deposits or withdrawals are made during this time. Which of the following statements is true-assuming that no additional deposits or withdrawals are made? It takes 10.50 years for $500 to double if invested at an annual rate of 5%. 0 It takes 14.21 years for $500 to double if invested at an annual rate of 5%.
3. Finding the interest rate and the number of years Aa Aa E The future value and present value equations also help in finding the interest rate and the number of years that correspond to present and future value calculations If a security currently worth $9,200 will be worth $12,106.57 seven years in the future, what is the implied interest rate the investor will earn on the security-assuming that no additional deposits or withdrawals are made? 7.60% 0 0.19% О 4.00% О 1.32% If an investment of $35,000 is earning an interest rate of 4.00%, compounded annually, then it will take for this investment to reach a value of $41,755.92-assuming that no additional deposits or withdrawals are made during this time. Which of the following statements is true-assuming that no additional deposits or withdrawals are made? It takes 10.50 years for $500 to double if invested at an annual rate of 5%. 0 It takes 14.21 years for $500 to double if invested at an annual rate of 5%.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:3. Finding the interest rate and the number of years
Aa Aa E
The future value and present value equations also help in finding the interest rate and the number of years that
correspond to present and future value calculations
If a security currently worth $9,200 will be worth $12,106.57 seven years in the future, what is the implied interest
rate the investor will earn on the security-assuming that no additional deposits or withdrawals are made?
7.60%
0 0.19%
О 4.00%
О 1.32%
If an investment of $35,000 is earning an interest rate of 4.00%, compounded annually, then it will take
for this investment to reach a value of $41,755.92-assuming that no additional deposits or
withdrawals are made during this time.
Which of the following statements is true-assuming that no additional deposits or withdrawals are made?
It takes 10.50 years for $500 to double if invested at an annual rate of 5%.
0 It takes 14.21 years for $500 to double if invested at an annual rate of 5%.
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