To calculate how many years (n) an investment (P) must be kept in anaccount that earns interest at i%, in order to triple in amount, which of thefollowing expressions should be used?(a) n = -P + F(P/F, i%, n)(b) n = [log (F/P)]/[log (1+ i%)](c) n = [ In(– P +F)]/[In i%](d) n = -F(1 + i%)P

A theory that helps to compute the present or future value of the cash flows is term as the TVM…

Answered: To calculate how many years (n) an…

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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To calculate how many years (n) an investment (P) must be kept in an account that earns interest at i%, in order to triple in amount, which of the following expressions should be used? (a) n = -P + F(P/F, i%, n) (b) n = [log (F/P)]/[log (1+ i%)] (c) n = [ In(– P +F)]/[In i%] (d) n = -F(1 + i%)P