Compound Interest $2000 is invested in an account at interest rate r, compounded continuously. Find the time (in years) required for the amount to double when r = 7.5% and when r = 3.5%. (Round your answers to two decimal places.) r = 7.5% yr r = 3.5% yr Are the times required for the investments above to quadruple twice as long as the times for them to double? Give a reason for your answer. Since In(4) = • In(2), the time it takes for the investments to quadruple is ---Select--- v the time it takes for them to double. Verify your answer algebraically. Find the time it takes for the investments to quadruple at each rate. (Round your answers to two decimal places.) r = 7.5% yr r = 3.5% yr

Compound Interest $2000 is invested in an account at interest rate r, compounded continuously. Find the time (in years) required for the amount to double when r = 7.5% and when r = 3.5%. (Round your answers to two decimal places.) r = 7.5% yr r = 3.5% yr Are the times required for the investments above to quadruple twice as long as the times for them to double? Give a reason for your answer. Since In(4) = • In(2), the time it takes for the investments to quadruple is ---Select--- v the time it takes for them to double. Verify your answer algebraically. Find the time it takes for the investments to quadruple at each rate. (Round your answers to two decimal places.) r = 7.5% yr r = 3.5% yr

Financial Management: Theory & Practice

16th Edition

ISBN:9781337909730

Author:Brigham

Publisher:Brigham

Chapter4: Time Value Of Money

Section: Chapter Questions

Problem 12MC: (1) What is the value at the end of Year 3 of the following cash flow stream if the quoted interest...

See similar textbooks

Similar questions

You initially invest $400 in a savings account that pays a yearly interest rate of 3%. (a) Write a formula for an exponential function giving the balance in your account as a function of the time since your initial investment. (Let B be the account balance in dollars and t be the number of years since the initial investment.) 8(t)= dollars (b) What monthly interest rate best represents this account? Round your answer to three decimal places. % (c) Calculate the decade growth factor. (Round your answer to two decimal places.) (d) Use the formula you found in part (a) to determine how long it will take for the account to reach $536. (Round your answer to the nearest whole number.) yr Explain how this is consistent with your answer to part (c), At the end of one decade, there will be $ where the account reaches $536 at the end of This --Select-- o the answer found above years,
A certain some of money P draws interest compounded continuously. If a certain time there are Po dollars in the account, determine the time when the financial attains the value of 2Po dollars if the annual interest rate at 2%
Find the accumulated value of an investment of $15,000 for 5 years at an interest rate of 1.45% if the money is a. compounded semiannually; b. compounded quarterly; c. compounded monthly d. compounded continuously. i Click the icon to view some finance formulas. a. What is the accumulated value if the money is compounded semiannually? (Round to the nearest cent as needed.) b. What is the accumulated value if the money is compounded quarterly? (Round to the nearest cent as needed.) C. What is the accumulated value if the money is compounded monthly? S (Round to the nearest cent as needed.) d. What is the accumulated value if the money is compounded continuously? S (Round to the nearest cent as needed.)
For the following exercise, use the compound interest formula, A(t) = P 1 + r n nt , where money is measured in dollars.After a certain number of years, the value of an investment account is represented by the expression 10,950 1 + 0.03 2 24 . How many years had the account been accumulating interest? yr
Find the missing values assuming continuously compounded interest. (Round your answers to two decimal places.) Initial Time to Double Annual Amount After Investment % Rate 10 Years $2000 2.6% X yr| $ Find the missing values assuming continuously compounded interest. (Round your answers to two decimal places.) Initial Annual Time to Double Amount After Investment % Rate 10 Years $800 yr $1105 You invest $4500 in an account at interest rate r, compounded continuously. Find the time required for the amount to double and triple. (Round your answers to two decimal places.) r = 0.0455 (a) double 27.73 X yr (b) triple | 43.94 X yr
nt Use the compound interest formulas A = P and A = Pert to solve the problem given. Round answers to the nearest cent. Find the accumulated value of an investment of $20,000 for 7 years at an interest rate of 4.5% if the money is a. compounded semiannually; b. compounded quarterly; c. compounded monthly; d. compounded continuously. a. What is the accumulated value if the money is compounded semiannually? (Round your answer to the nearest cent. Do not include the $ symbol in your answer.) b.What is the accumulated value if the money is compounded quarterly? (Round your answer to the nearest cent. Do not include the $ symbol in your answer.) c. What is the accumulated value if the money is compounded monthly? (Round your answer to the nearest cent. Do not include the $ symbol in your answer.) d. What is the accumulated value if the money is compounded continuously? (Round your answer to the nearest cent. Do not include the $ symbol in your answer.)
Need help in letter d
Investigating Continuous Growth For part a, use the continuous compound interest formula, A(t) = Pet Suppose an investment account is opened with an initial deposit of $11,500.00 earning 7.1% interest compounded continuously (Use the "S" symbol in your answers. Round to the nearest cent, if necessary) a. How much will the account be worth after 25 years? b. How much will the account be worth after 25 years if it were compounded monthly instead? Ca.
Number of years needed to accumulate a future amount For the following case, determine the number of years it will take for the initial deposit to grow to equal the future amount at the given interest rate. (Click-on the icon here in order to copy the contents of the data table below into a spreadsheet.) The number of years for this investment, n, is Initial deposit Future amount $12,187 $24,600 years. (Round to two decimal places.) Interest rate 8%
Suppose that $1,000 is invested at 6% interest compounded continuously. Use the formula A = Pert. (a) How long (to the nearest day) before the value is $1,250? (answer should be in years, days) (b) How long (to the nearest day) before the money doubles? (answer should be in years, days)
Suppose you knew of an investment that went from $1,000 to $8,000 in 24 years. Using the table below, without using a calculator, find what the approximate annual rate was. % Interest Rate (%) Doubling Time (Years) 4 17.67 5 14.21 6 11.90 7 10.24 8 9.01 9 8.04 10 7.27 15 4.96 20 3.80
K Number of years needed to accumulate a future amount For the following case, determine the number of years it will take for the initial deposit to grow to interest rate. (Click on the icon located on the top-right corner of the data table below in order to copy its contents into a spreadsheet.) Initial deposit Future amount $300 $1,000 The number of years for this investment, n, is years. (Round to two decimal places.) BELLES Interest rate 7%