Suppose you are offered an investment that will allow you to double your money in 6 years. You have $10,000 to invest. What is the implied rate of interest? 12.25% b. 13.5% c. 11.75% d. a. 15% Mike just decided to save money cach year for the next four years to help fund a new property. If it earned 1070 on its savings, what does the savings worth today (NPV)? End of Amount Saved: year: $ 15,000 $ 20,000 S 25,000 $ 30,000 4. $69,439 b. $72,288 c. $83,569 d. $95,365 a. For a given period, the a. higher, bigger the interest rate, the the present value. b. not sure c. lower, bigger d. lower, smaller It takes about how many years for your initial $1,500 imvestment to get double if annual compound interest rate 12%? a. 6 b. 7 8. d. 9 8. Suppose von
Suppose you are offered an investment that will allow you to double your money in 6 years. You have $10,000 to invest. What is the implied rate of interest? 12.25% b. 13.5% c. 11.75% d. a. 15% Mike just decided to save money cach year for the next four years to help fund a new property. If it earned 1070 on its savings, what does the savings worth today (NPV)? End of Amount Saved: year: $ 15,000 $ 20,000 S 25,000 $ 30,000 4. $69,439 b. $72,288 c. $83,569 d. $95,365 a. For a given period, the a. higher, bigger the interest rate, the the present value. b. not sure c. lower, bigger d. lower, smaller It takes about how many years for your initial $1,500 imvestment to get double if annual compound interest rate 12%? a. 6 b. 7 8. d. 9 8. Suppose von
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:Suppose you are offered an investment that will allow you to double your money in 6 years. You have $10,000 to
invest. What is the implied rate of interest?
12.25%
b. 13.5%
c. 11.75%
d.
a.
15%
Mike just decided to save money cach year for the next four years to help fund a new property. If it earned 1070
on its savings, what does the savings worth today (NPV)?
End of
Amount
Saved:
year:
$ 15,000
$ 20,000
S 25,000
$ 30,000
4.
$69,439
b. $72,288
c. $83,569
d. $95,365
a.
Transcribed Image Text:For a given period, the
a. higher, bigger
the interest rate, the
the present value.
b. not sure
c. lower, bigger
d. lower, smaller
It takes about how many years for your initial $1,500 imvestment to get double if annual compound interest rate
12%?
a. 6
b. 7
8.
d. 9
8. Suppose von
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