A bank account pays 5.5% annual interest, compounded monthly. How long will it take the money to double in this account? If the present value is Rs.1, its future value is Rs.2. The bank is compounding monthly; thus, the interest rate is 5.5/12 percent per month. Q7: A bank account pays 5.5% annual interest, compounded monthly. How long will it take themoney to double in this account? If the present value is Rs.1, its future value is Rs.2. The bank iscompounding monthly; thus, the interest rate is 5.5/12 percent per month.

Present Value The present value is the value of cash flow stream or the fixed lump sum amount at…

A bank account pays 5.5% annual interest, compounded monthly. How long will it take the money to double in this account? If the present value is Rs.1, its future value is Rs.2. The bank is compounding monthly; thus, the interest rate is 5.5/12 percent per month.

A bank account pays 5.5% annual interest, compounded monthly. How long will it take the money to double in this account? If the present value is Rs.1, its future value is Rs.2. The bank is compounding monthly; thus, the interest rate is 5.5/12 percent per month.

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter5: The Time Value Of Money

Section: Chapter Questions

Problem 31P

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A bank account pays 5.5% annual interest, compounded monthly. How long will it take the money to double in this account? If the present value is Rs.1, its future value is Rs.2. The bank is compounding monthly; thus, the interest rate is 5.5/12 percent per month.

Q7: A bank account pays 5.5% annual interest, compounded monthly. How long will it take the
money to double in this account? If the present value is Rs.1, its future value is Rs.2. The bank is
compounding monthly; thus, the interest rate is 5.5/12 percent per month.

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