You would like to invest your current savings of $2200 so that it would grow to $3000 in 3 years. a) What simple interest rate would you need? b) At 5% simple interest, how long would it take for $2200 to grow to $3000? c) What principal invested today at 4% simple interest would grow to $3000 in 3 years?
You would like to invest your current savings of $2200 so that it would grow to $3000 in 3 years. a) What simple interest rate would you need? b) At 5% simple interest, how long would it take for $2200 to grow to $3000? c) What principal invested today at 4% simple interest would grow to $3000 in 3 years?
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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You would like to invest your current savings of $2200 so that it would grow to $3000 in 3 years.
a) What simple interest rate would you need?
b) At 5% simple interest, how long would it take for $2200 to grow to $3000?
c) What principal invested today at 4% simple interest would grow to $3000 in 3 years?
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