The future value and present value equations also help in finding the interest rate and the number of years that correspond to present and future value calculations. If a security of $6,000 will be worth $7,895.59 seven years in the future, assuming that no additional deposits or withdrawals are made, what is the implied interest rate the investor will earn on the security? 3.00% 3.20% 4.00% 4.80% If an investment of $30,000 is earning an interest rate of 6.00% compounded annually, it will take value of $45,108.91-assuming that no additional deposits or withdrawals are made during this time 0.2 years Which of the following statements is true, assuming that no additional deposits or withdrawals are 1.5 years 6.7 years It takes 10.5 years for $500 to double if invested at an annual rate of 5%. It takes 14.2 years for $500 to double if invested at an annual rate of 5%. 7.0 years for this investment to grow to a
The future value and present value equations also help in finding the interest rate and the number of years that correspond to present and future value calculations. If a security of $6,000 will be worth $7,895.59 seven years in the future, assuming that no additional deposits or withdrawals are made, what is the implied interest rate the investor will earn on the security? 3.00% 3.20% 4.00% 4.80% If an investment of $30,000 is earning an interest rate of 6.00% compounded annually, it will take value of $45,108.91-assuming that no additional deposits or withdrawals are made during this time 0.2 years Which of the following statements is true, assuming that no additional deposits or withdrawals are 1.5 years 6.7 years It takes 10.5 years for $500 to double if invested at an annual rate of 5%. It takes 14.2 years for $500 to double if invested at an annual rate of 5%. 7.0 years for this investment to grow to a
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
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Transcribed Image Text:The future value and present value equations also help in finding the interest rate and the number of years that correspond to present and future
value calculations.
If a security of $6,000 will be worth $7,895.59 seven years in the future, assuming that no additional deposits or withdrawals are made, what is the
implied interest rate the investor will earn on the security?
O 3.00%
O 3.20%
O 4.00%
Ⓒ 4.80%
If an investment of $30,000 is earning an interest rate of 6.00% compounded annually, it will take
value of $45,108.91-assuming that no additional deposits or withdrawals are made during this time
0.2 years
Which of the following statements is true, assuming that no additional deposits or withdrawals are 1.5 years
O It takes 10.5 years for $500 to double invested at an annual rate of 5%.
O It takes 14.2 years for $500 to double if invested at an annual rate of 5%.
6.7 years
7.0 years
for this investment to grow to a
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