Franklin predicted that the 1,000 pounds he was leaving would grow to 131,000 pounds in 100 years if loaned at 5 percent interest and compounded yearly. This means that each year, the 5 percent is computed on the total amount in the account, including the past interest. What will 1,000 pounds grow to if interest is compounded yearly at 5 percent for 5 years? pounds
Franklin predicted that the 1,000 pounds he was leaving would grow to 131,000 pounds in 100 years if loaned at 5 percent interest and compounded yearly. This means that each year, the 5 percent is computed on the total amount in the account, including the past interest. What will 1,000 pounds grow to if interest is compounded yearly at 5 percent for 5 years? pounds
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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c. Franklin predicted that the 1,000 pounds he was leaving would grow to 131,000 pounds
in 100
each year, the 5 percent is computed on the total amount in the account, including the
past interest. What will 1,000 pounds grow to if interest is compounded yearly at 5
percent for 5 years?
years
if loaned at 5 percent interest and compounded yearly. This means that
pounds
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