Calculate the future value of $5,000 in a. 4 years at an interest rate of 9% per year. b. 8 years at an interest rate of 9% per year. c. 4 years at an interest rate of 18% per year. d. Why is the amount of interest earned in part a less than half the amount of interest earned in part b? a. 4 years at an interest rate of 9% per year. The future value of $5,000 in 4 years at an interest rate of 9% per year is $ 7,057.91. (Round to the nearest dollar.) b. 8 years at an interest rate of 9% per year. The future value of $5,000 in 8 years at an interest rate of 9% per year is $ 9,963. (Round to the nearest dollar.) c. 4 years at an interest rate of 18% per year. The future value of $5,000 in 4 years at an interest rate of 18% per year is $ 12,932.92. (Round to the nearest dollar.)
Calculate the future value of $5,000 in a. 4 years at an interest rate of 9% per year. b. 8 years at an interest rate of 9% per year. c. 4 years at an interest rate of 18% per year. d. Why is the amount of interest earned in part a less than half the amount of interest earned in part b? a. 4 years at an interest rate of 9% per year. The future value of $5,000 in 4 years at an interest rate of 9% per year is $ 7,057.91. (Round to the nearest dollar.) b. 8 years at an interest rate of 9% per year. The future value of $5,000 in 8 years at an interest rate of 9% per year is $ 9,963. (Round to the nearest dollar.) c. 4 years at an interest rate of 18% per year. The future value of $5,000 in 4 years at an interest rate of 18% per year is $ 12,932.92. (Round to the nearest dollar.)
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:Calculate the future value of $5,000 in
a. 4 years at an interest rate of 9% per year.
b. 8 years at an interest rate of 9% per year.
c. 4 years at an interest rate of 18% per year.
d. Why is the amount of interest earned in part a less than half the amount of interest earned in part b?
a. 4 years at an interest rate of 9% per year.
The future value of $5,000 in 4 years at an interest rate of 9% per year is $ 7,057.91. (Round to the nearest dollar.)
b. 8 years at an interest rate of 9% per year.
The future value of $5,000 in 8 years at an interest rate of 9% per year is $ 9,963. (Round to the nearest dollar.)
c. 4 years at an interest rate of 18% per year.
The future value of $5,000 in 4 years at an interest rate of 18% per year is $ 12,932.92. (Round to the nearest dollar.)
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