Using the rule of 72, approximately how many years are needed to double a $100 investment when interest rates are 8.50 percent per year? (Round your answer to 2 decimal places.)   What’s the present value of a $900 annuity payment over five years if interest rates are 8 percent? (Do not round intermediate calculations and round your final answer to 2 decimal places.)   If the present value of an ordinary, 7-year annuity is $6,500 and interest rates are 7.5 percent, what’s the present value of the same annuity due? (Round your answer to 2 decimal places.)

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
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Using the rule of 72, approximately how many years are needed to double a $100 investment when interest rates are 8.50 percent per year? (Round your answer to 2 decimal places.)

 

What’s the present value of a $900 annuity payment over five years if interest rates are 8 percent? (Do not round intermediate calculations and round your final answer to 2 decimal places.)

 

If the present value of an ordinary, 7-year annuity is $6,500 and interest rates are 7.5 percent, what’s the present value of the same annuity due? (Round your answer to 2 decimal places.)

 

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