7. Invested in an account earning 14% per year. If you invest $500 today, how many years will it take for this to grow to $2,000 (4 times your initial investment)? Options More than 15 years 7-8 years 8-9 years 10-11 years 9-10 years 11-12 years
7. Invested in an account earning 14% per year. If you invest $500 today, how many years will it take for this to grow to $2,000 (4 times your initial investment)?
Options
More than 15 years
7-8 years
8-9 years
10-11 years
9-10 years
11-12 years
8. The Mandalorian has chosen to invest in an orphanage for misplaced foundlings like Grogu, and he took out a loan for $13,000,000 to do so. He plans to pay off the loan in 8 years. He makes payments of $3,900,000 on the loan in years 2, 4, and 6. If the loan has an interest rate of 3.5%, how much will his final payment be in year 8 when he pays off the remainder of the loan? (Round to the nearest $)
Note:
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To determine, the number of years, have to use the formula of future value from present value.
The number of years required is equal to the period wherein the present value of a sum becomes equal to the future value. It means how many years takes to compound the present value at the interest rate for becoming the future value.
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