The amount of $10,000 is invested and will be worth $21,000 in nine years What is the cortiusly compoundednominal (annual) interest rate?Select one:O a. 8.2%O b. 7.7%C. 8.8%O d. 6.5%O e. 7.1%

Continuous Compounded Interest rate is the interest rate that is calculated on the principal amount…

The amount of $10,000 is invested and will be worth $21,000 in nine years. What in the continuoushy compounded nominal (annual) interest rate? Select one: O a. 8.2% O b. 7.7% O c. 8.8% O d. 6.5% O e. 7.1%

The amount of $10,000 is invested and will be worth $21,000 in nine years. What in the continuoushy compounded nominal (annual) interest rate? Select one: O a. 8.2% O b. 7.7% O c. 8.8% O d. 6.5% O e. 7.1%

EBK CFIN

6th Edition

ISBN:9781337671743

Author:BESLEY

Publisher:BESLEY

Chapter4: Time Value Of Money

Section: Chapter Questions

Problem 9PROB

See similar textbooks

Related questions

Q: Given an interest rate of 8.5 percent per year, what is the value at date t= 8 of a perpetual stream…

A: As per the given question:Interest rate = R= 8.5%Payment= P= $1,900Number of years= T= 14The value…

Q: 6) What is the future value (FV) of $20,000 in four years, assuming the interest rate is 4% per…

A: Given, PV of amount is $20000 rate is 4% term is 4 years

Q: Given an interest rate of 9 percent per year, what is the value at date t-6 of a perpetual stream of…

A: Interest rate (i) = 0.09 Annual payment (C) = $1200 Period from year 6 to 14 (n) = 8 Value at t6 = ?…

Q: Calculate the future value of the following single amounts. (FV of $1. PV of $1. FVA of $1, and PVA…

A: The time value of money refers to the concept in finance which assumes that the worth of money when…

Q: 8) Suppose an investment of $5.750.00 paying 6.5% nominal rate compounded semi-annually has a term…

A: Compound interest refers to an amount that is to be paid in addition with the principal amount or…

Q: An investment of $11,550 is deposited for 3 years at 2.2% compounded monthly. At this point, the…

A: Deposit=$115503 years , interest rate is 2.2% compounding monthly5 years, interest rate is 1.95%…

Q: What would be the future value of $7,992 invested annually for nine years beginning one year from…

A: future value formula: future value =A×1+rn-1r where, A=annuity r=rate of interest n=number of years

Q: 1. Find the future value of a one time investment of $8,000 if the account compounds quarterly at…

A: Future value:Future value (FV) is the idea of how much an investment will be valued at a certain…

Q: Calculate the future value of an investment if the annual interest rate is 9%, number of payments is…

A: Details given in the question are as follows: Annual payment = $1000 Time period (number of periods)…

Q: What is the future value (FV) of $20,000 in four years, assuming the interest rate is 4% per year? O…

A: Future value is that amount which will be require to paid at some specified period of time. It…

Q: Assume you invest $1 000 at the end of this year, at the end of the second year, and at the end of…

A: Annual deposit for 3 years = $ 1000 Annual interest rate = 5% Future value period = 4 Years

Q: An investment pays you $30,000 at the end of this year, and $15,000 at the end of each of the four…

A: Present value is the value of the future sum at current time. It is computed by discounting the…

Q: An investment offers to pay $600 quarterly for 21 years with an interest rate of 6%, how much is…

A: Present Value of annuity refers to the present value of all the future payments of and series of…

Q: ou can assume that all payments are made at the beginning of the period and use "1" for the "type"…

A: a. Future value$ 81,102.53b. Future value$ 85,289.85c. Future value$ 444,644.11Explanation:The above…

Q: If the current rate of interest is 5%, then the future value (FV) of an investment that pays $1,000…

A: The question is based on the concept of future value calculation of annuity payment, by use of…

Q: When an initial amount of è dollars is invested at r% annual interest compounded n times per year,…

A: The Initial amount of P Dollars is invested at r% annual interest , compounded n times per year ,…

Q: What is the future value of $6000 invested for 4 years, if the interest rate is 12% p.a.,…

A: In this question we require to compute the future value of $6000 invested for 4 years at 12%…

Q: Classify the financial problem. Assume a 4% interest rate compounded annually. Find the value of a…

A: Future value deals with the value of money at a future date which is different from the value today…

Q: 8. Determine the future value at the end of two years of an investment of OMR3,000 made now and an…

A: Future value refers to the future worth of a money that has been invested now. Future value of money…

Q: Assume a 9% interest rate compounded annually. What annual deposit is necessary to give $10,000 in…

A: Future Value $ 10,000.00 Time Period 6 Interest Rate 9.00%

Q: 3. 4. How much interest on interest is earned in an account by the end of 5 years if $100,000 is…

A: To calculate the interest earned on an account with continuous compounding, we use the formula: A =…

Q: What's the future value of $1,225 after 5 years

A: Future value (FV) refers to a method of calculating how much the present value (PV) of an asset or…

Q: Assume you invest $15,000 today. How much will you have in six years at an interest rate of 9%?…

A: Future value:Based on the investment's current value and anticipated future growth, the future value…

Q: 8. Determine the future value at the end of two years of an investment of OMR3,000 made now and an…

A: The future value of an investment is the accumulation of an initial amount at a certain rate of…

Q: What is the total future value ten years from now of $400 received in 1 year, $350 received in 2…

A: Future value of a present amount With present value (PV), annual interest rate (r) and period (n),…

Q: The current amount A of a principal P invested in a savings account paying an annual interest rate r…

A: The current value: The current value refers to the value at present of a sum of money to be…

Q: Assume that you are preparing an amortization table for a three-year note with a stated and yield…

A: Amortization table is the table which shows all the amortization and the interest expenses and as…

Q: If an initial investment of $1,000 is invested at 8% interest per year with semi-annual compounding,…

A: Present value is the value of money at zero point of time available for the investment at a specific…

Q: Find the accumulated value of an investment of $15,000 for 5 years at an interest rate of 1.45% if…

A: Hi studentSince there are multiple subparts asked, we will answer only first three subparts.Time…

Question

The amount of $10,000 is invested and will be worth $21,000 in nine years What is the cortiusly compounded
nominal (annual) interest rate?
Select one:
O a. 8.2%
O b. 7.7%
C. 8.8%
O d. 6.5%
O e. 7.1%

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step 3

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 3 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.

Similar questions

You want to invest $8,000 at an annual Interest rate of 8% that compounds annually for 12 years. Which table will help you determine the value of your account at the end of 12 years? A. future value of one dollar ($1) B. present value of one dollar ($1) C. future value of an ordinary annuity D. present value of an ordinary annuity
How much would you invest today in order to receive $30,000 in each of the following (for further Instructions on present value In Excel, see Appendix C): A. 10 years at 9% B. 8 years at 12% C. 14 years at 15% D. 19 years at 18%
If an initial investment of $1,000 is invested at 8% interest per year with semi-annual compounding, how much would be in the account after five years? A. $1,081.60 B. $1,061.66 C. $1,051.00 D. $1,281.60 The difference between the present and future worth of money at some time in the future is called A. Discount B. Deduction C. Inflation D. Depletion
What's the future value of $1,225 after 5 years if the appropriate interest rate is 6%, compounded monthly? a. $1,900.19 b. $1,652.34 c. $1,751.48 d. $1,371.44 e. $1,272.30
What will be the future value of $5 000 invested for six years at 8% per annum compounded annually? Select one: a. $7 543.46 b. $7 923.37 c. $7 934.37 d. $6 532.81
What is the future value of $118,000 invested for 5 years at 11% compounded monthly? (a) State the type. A. ordinary annuityB. present value C. amortizationD. sinking fundE. future value (b) Answer the question. (Round your answer to the nearest cent.)
What amount of money will mature to $63,750 in 3 years and 8 months at the interest rate of 6.75% p.a.? $
If you invest $8,000 at the end of every year for nine years at an interest rate of 8%, the balance of your investment in 3 years will be closest to Future Value of $1 Periods 3 4 5 5% 1.150 1216 1276 1.340 Future Value of Annuity of $1 Periods 5% 3 3.153 4 4.310 A. $25,968 OB. $10,080 OC. $24,000 OD. $20,616 6% 1.191 1.262 1.338 1.410 6% 3 184 4.375 8% 1.200 1.360 1.400 1.587 8% 3.246 4.506 10% 1.331 1.464 1611 1.772 10% 3.310 4.641
Calculate the future value of $8,000 in a. 9 years at an interest rate of 9% per year. b. 18 years at an interest rate of 9% per year. c. 9 years at an interest rate of 18% per year. d. Why is the amount of interest earned in part (a) less than half the amount of interest earned in part (b)?
At a annual effective rate of interest i, payment of $100 from now,$200 two years from now and $100 four years from now have a total present value of $300. Calculate i A.11.7% B.13% C.14.5% D.15.8% E.16.9%
What is the future equivalent at EOY 8 of $5,000 annual payments made at the beginning of each year for 8 years at 7% annual interest rate? O a. $55,355 b. $51,644 c. $51,299 d. $54,890 e. $60,355
Assume that you invest $1000 for 15 years in an account that pays an interest rate of 7% per year with annual compounding. Calculate the proportion of the total value of the account that can be attributed to interest-on-interest, at the end of 15 years. * 38.06% 36.24% 25.70% 0% 100%