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 wvalue calculations. If a security currently worth $9,200 will be worth $15,767.18 seven years in the future, what is the impilled interest rate the investor will earn on the security-assuming that no additional deposits or withdrawals are made? O 5.83 % O 6.40% 8.00% O 1.71% of an investment of $50,000 is earning an interest rate of 8.00%, compounded annually, then it will take value of $89,052.92-assuming that no additional deposits or withdrawals are made during this time. for this investment to reach Which of the following statements is true-assuming that no additional deposits or withdrawals are made? O An investment of $25 at an annual rate of 10% will return a higher value in five years than $50 invested at an annual rate of 5% in the same time. O An investment of $50 at an annual rate of 5% will return a higher value in five years than $25 invested at an annual rate of 10% in the same time.
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 wvalue calculations. If a security currently worth $9,200 will be worth $15,767.18 seven years in the future, what is the impilled interest rate the investor will earn on the security-assuming that no additional deposits or withdrawals are made? O 5.83 % O 6.40% 8.00% O 1.71% of an investment of $50,000 is earning an interest rate of 8.00%, compounded annually, then it will take value of $89,052.92-assuming that no additional deposits or withdrawals are made during this time. for this investment to reach Which of the following statements is true-assuming that no additional deposits or withdrawals are made? O An investment of $25 at an annual rate of 10% will return a higher value in five years than $50 invested at an annual rate of 5% in the same time. O An investment of $50 at an annual rate of 5% will return a higher value in five years than $25 invested at an annual rate of 10% in the same time.
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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Transcribed Image Text:6. Finding the interest rate and the number of years
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 currently worth $9,200 will be worth $15,767.18 seven years in the future, what is the implied interest rate the investor will earn on the
security-assuming that no additional deposits or withdrawals are made?
5.83%
O6.40%
8.00%
O 1.71 %
If an investment of $50,000 is earning an interest rate of 8.00%, compounded annually, then it will take
a value of $89,052.92-assuming that no additional deposits or withdrawals are made during this time.
for this investment to reach
Which of the following statements is true-assuming that no additional deposits or withdrawals are made?
An investment of $25 at an annual rate of 10% will return a higher value in five years than $50 invested at an annual rate of 5% in the
same time.
An investment of $50 at an annual rate of 5% will return a higher value in five years than $25 invested at an annual rate of 10% in the
same time.
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