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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Question
Transcribed Image Text:7. How many years would it take for money to triple in value at 20% per year
simple interest?
8. If Farah Manufacturing wants its investments to double in value in 4 years, wha
rate of return would it have to make on the basis of (a) simple interest and (b)
compound interest?
9. What simple interest rate per year would be required to accumulate the same
Expert Solution
Step 1
Let the principal be x
And the amount be 3x
Simple interest=Amount-principal
=3x-x
=2x
Rate is given =20%
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