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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Question
Transcribed Image Text:How many years will it take an investment to triple if the interest rate is 4%
compounded monthly?
a) Between 37 and 39 years
b) Between 47 and 49 years
O c) Between 27 and 29 years
d) Between 17 and 19 years
O e) None of the answers is correct
Transcribed Image Text:Future worth, F, has to be found from a
present amount, P, five years from now at an
interest rate of 6% per year, compounded
monthly. What interest rate must be used in
the F/P factor, (F/P,i%,n), when n is 10?
How many years will it take an investment to
triple if the interest rate is 4% compounded
monthly?
Question 1 (U
Future worth, 5, has to be found from a present amount, P. five years from now at an
interest rate of 6% per year, compounded monthly. What interest rate must be used
in the F/P factor, (F/P.1%,n), when n is 10?
O a) Between 0.020-0.021
O b) None of the answers is correct
O c) Between 0.040-0.041
d) Between 0.070-0.071
e) Between 0.010-0.011
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