Suppose that $1,000 is invested at 7% interest compounded monthly. Use the formula nt A = P(1 + (a) How long (to the nearest month) before the value is $1,250? 3 years, 3 months (b) How long (to the nearest month) before the money doubles? 10 X years, 0 xmonths (c) What is the interest rate (compounded monthly and rounded to the nearest percent) if the money doubles in 5 years? 13.94 %
Suppose that $1,000 is invested at 7% interest compounded monthly. Use the formula nt A = P(1 + (a) How long (to the nearest month) before the value is $1,250? 3 years, 3 months (b) How long (to the nearest month) before the money doubles? 10 X years, 0 xmonths (c) What is the interest rate (compounded monthly and rounded to the nearest percent) if the money doubles in 5 years? 13.94 %
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
![Suppose that $1,000 is invested at 7% interest compounded monthly. Use the formula
nt
A = P 1 +
(a) How long (to the nearest month) before the value is $1,250?
3
years, 3
months
(b) How long (to the nearest month) before the money doubles?
10
x years, 0
xmonths
(c) What is the interest rate (compounded monthly and rounded to the nearest percent) if the money doubles in 5 years?
13.94](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F42140ad9-76b7-41fc-a361-6f3a770a6006%2F67e33104-7bed-4e66-804e-cfcde20f921c%2Fllj8lr6_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Suppose that $1,000 is invested at 7% interest compounded monthly. Use the formula
nt
A = P 1 +
(a) How long (to the nearest month) before the value is $1,250?
3
years, 3
months
(b) How long (to the nearest month) before the money doubles?
10
x years, 0
xmonths
(c) What is the interest rate (compounded monthly and rounded to the nearest percent) if the money doubles in 5 years?
13.94
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