B). An investment fund guarantees to double your money in five years. What rate of j2 is implied ?

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
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Please answer the question no. B
A).$4500 will be paid 6 years and 10 months now.
Find present value of payment if interest is at rate
j2 = 9%. Use the practical metho.
B). An investment fund guarantees to double your
money in five years. What rate of j2 is implied ?
C). If money doubles at certain rate of interest
compound monthly in six years. How long will
it take to the same amount of money to triple in
valuy ?
Transcribed Image Text:A).$4500 will be paid 6 years and 10 months now. Find present value of payment if interest is at rate j2 = 9%. Use the practical metho. B). An investment fund guarantees to double your money in five years. What rate of j2 is implied ? C). If money doubles at certain rate of interest compound monthly in six years. How long will it take to the same amount of money to triple in valuy ?
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