For an investment to triple in value during a 15-year period, a. What annually compounded rate of

Question:

For an investment to triple in value during a 15-year period,
a. What annually compounded rate of return must it earn?
b. What quarterly compounded rate of return must it earn?
c. What monthly compounded rate of return must it earn?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Business Mathematics In Canada

ISBN: 978-0070009899

7th edition

Authors: Ernest Jerome

See More Books

Question Posted: Jan 20, 2016 07:30 AM

See More Questions

A very optimistic hedge fund investor expects his single-deposit investment to triple in value in 5 years. (a) What is the required effective monthly rate, compounded continuously? (b) What is the...
How many years will it take an investment to triple if the interest rate is 6% compounded annually?
A loan company offers money at 1.95% per month compounded monthly. (a) What is the nominal interest rate? (b) What is the effective annual interest rate? (c) How many years will it take an investment...
In preparing the consolidation worksheet for Bolger Corporation and its 60 percent owned subsidiary, Feldman Company, the following elimination entries were proposed by Bolgers bookkeeper: Bolger's...
On January 1, 2009, Paul Company purchased 80% of the voting stock of Simon Company for $1,360,000 when Simon Company had retained earnings and capital stock in the amounts of $ 450,000 and...
Carbon and silicon belong to Group 4A of the periodic table and have the same valence electron configuration (ns2np2). Why does silicon dioxide (SiO2) have a much higher melting point than carbon...
Columbia Insurance Company has a process for making payments on insurance claims as follows: An activity analysis revealed that the cost of these activities was as follows: Receiving...
The University of Danville is a private not-for-profit university that starts the current year with $700,000 in net assets: $400,000 unrestricted, $200,000 temporarily restricted, and $100,000...
A preferred stock from Hecla Mining Co. (HLPRB) pays $2.80 in annual dividends. If the required rate of return on the preferred stock is 6.8 percent, what is the fair present value of the stock?...
If an r value equals 0.5 and N = 4, would you conclude that a positive correlation is found between the two variables? Explain your answer. What if N = 500?
For an investment to double in value during a 10-year period, a. What annually compounded rate of return must it earn? b. What semiannually compounded rate of return must it earn? c. What monthly...
What compound annual rate of return is required for an investment to double in: a. 12 years? b. 10 years? c. 8 years? d. 6 years? For each case, multiply the annual rate of return (in %) by the time...
Howcan sensitivity analysis be used in conjunction with cost-volume-profit analysis? (p. 188)
Account is a domestic growth portfolio. The current holdings are primarily US exchange-traded stocks and bonds. To remain in compliance, the total portfolio may only invest up to a maximum of 5% in...
The President of the United States needs your help. He has asked you to investigate and find answers to several important questions. His questions are included in the Letter from the President below....
Cheng Co. reports the following information for the coming year. Labor rate, including fringe benefits Annual labor hours Annual materials purchases Annual overhead costs: Materials purchasing,...
Compared to most objects, sound waves travel very fast. It is fast enough that measuring the speed of sound is a technical challenge. One method you could use would be to time an echo. For example,...
Sharif and Judith are married and purchased a vacation home together in Maine for $ 2 5 0 , 0 0 0 . Sharif died suddenly six months later and at that time the fair market value of the vacation home...
S Co has an obligation to pay its employees remuneration that is pegged to the price of shares of its parent, P Co. How should the share-based payment transaction be accounted for by P Co, S Co, and...
Refer to Example 9.15. Add the following functionality to this program: Allow the user to enter the cost of a gallon of gas on each trip and use a function, Cost() to calculate the cost of purchasing...
A corporation has total stockholders' equity of $\$ 100,000$, including retained earnings of $\$ 19,000$. The cash balance is $\$ 35,000$. The maximum cash dividend the company can declare and...
The local Audubon Society has just put a new bird feeder in the park at a cost of $500. The feeder has a useful life of 5 years and an annual maintenance cost of $50. Our cat, Fred, was very...
We want to donate a marble birdbath to the city park as a memorial to our cat, Fred, while he can still enjoy it. We also want to set up a perpetual care fund to cover future expenses "forever." The...
Dr. Fog E. Professor is retiring and wants to endow a chair of engineering economics at his university. It is expected that he will need to cover an annual cost of $100,000 forever. What lump sum...
why would an auditor want to complete dual-purpose tests? what procedure can be put into place to help prevent fraud? List 4 procedures.
Based on the following information, calculate sustainable growth rate for Groot, Inc.: Profit margin= 7.1% Total asset turnover = 1.90 Total debt ratio = .45 Payout ratio = 20% What is the ROA here?
Consider the following: a call option on a stock has strike price $100, premium of $5 and the current price of the underlying stock is $100. If you buy the call option today, what is your holding...

For an investment to triple in value during a 15-year period, a. What annually compounded rate of

Question:

Step by Step Answer:

Use PV 1 FV 3 term 15 years a j mi ...View the full answer

Business Mathematics In Canada

Students also viewed these Accounting questions