If the interest rate is 6% per year, how long will it take for your money to

Question:

If the interest rate is 6% per year, how long will it take for your money to quadruple in value? If the inflation rate is 4% per year, what will be the change in the purchasing power of your money over this period?

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

Step by Step Answer:

Related Book For book-img-for-question

Fundamentals of Corporate Finance

ISBN: 978-0077861629

8th edition

Authors: Richard Brealey, Stewart Myers, Alan Marcus

See More Books

Question Posted: Jun 30, 2016 09:11 AM

See More Questions

The U.S. Army received two proposals for a turnkey design-build project for barracks for infantry unit soldiers in training. Proposal A involves an off-the-shelf "bare-bones" design and standard...
The Ester Municipal Water Utility issued 20-year bonds in the amount of $53 million for several high-priority flood control improvement projects. The bonds carried a 5.38% dividend rate with the...
A proposal to reduce traffic congestion on I-5 has a B/C ratio of 1.4. The annual worth of benefits minus disbenefits is $560,000. What is the first cost of the project if the interest rate is 6% per...
At one time the Thames River in England supported an abundant community of fish. Pollution then destroyed all the fish in a 40-mile stretch near its mouth for a 45-year period beginning in 1915....
Sampling four pieces of precision-cut wire (to be used in computer assembly) every hour for the past 24 hours has produced the following results: Develop appropriate control limits and determine...
Selected comparative income statement amounts for a company are shown below. Using 2013 as the base year for a horizontal analysis, compute the account with the most significant change. 2013 2014...
(Adapted from Chapter 3 in Kreps (1990).) Imagine a greedy, risk-averse, expected utility maximizing consumer whose end-of-period income level is subject to some uncertainty. The income will be Y...
On January 1, 2010, the balance in Kubera Co.s Allowance for Bad Debts account was $9,720. During the year, a total of $23,900 of delinquent accounts receivable was written off as bad debts. The...
Part One: Ratio Analysis Pick one debt ratio and one profitability ratio, which you did not analyze, from the week three portfolio milestone. Research a publicly traded technology company and access...
Maggie could not conceive a child using natural means, so she sought out a woman who would donate an egg to be surgically implanted in Maggie. Which of the following items are deductible by Maggie in...
Suppose you take out a $100,000, 20-year mortgage loan to buy a condo. The interest rate on the loan is 6%, and to keep things simple, we will assume you make payments on the loan annually at the end...
Good news: You will almost certainly be a millionaire by the time you retire in 50 years. Bad news: The inflation rate over your lifetime will average about 3%. a. What will be the real value of $1...
Sunbeam created big _________________ for the write-down of assets and for future losses or liabilities in order to boost future profits.
Revenue and cash receipts journals; accounts receivable subsidiary and general ledgers Transactions related to revenue and cash receipts completed by Crowne Business Services Co. during the period...
Panguitch Company had sales for the year of $100,000. Expenses (except for income taxes) for the year totaled $80,000. Of this $80,000 in expenses, $10,000 is bad debt expense. The tax rules...
Assume that the composition of federal outlays and receipts shown in the figure remained the same in 2019. In the figure, the categories "Defense and homeland security" and "Non-defense...
1) A car's age is a _ variable. Quantitative O Categorical 2) A car's maker is a variable O Quantitative Categorical 3) A house's square footage is a _________variable O Quantitative O Categorical 4)...
The following table shows the distribution of clients by age limits. Use the grouped data formulas to calculate the variance and standard deviation of the ages. Rango de edad Cantidad de clientes...
A British health minister once claimed that the demand for health care is infinite because everyone is in a losing battle against death. This is not so for American dentistry, however. As aggregate...
A sprinkler head malfunctions at midfield in an NFL football field. The puddle of water forms a circular pattern around the sprinkler head with a radius in yards that grows as a function of time, in...
You bought a 10-year, 5% coupon bond for $ 1,000 and sold it 1 year later for $1,100. What is the rate of return on your investment if the bond pays interest annually?
The following are the yields to maturity on Canada strip bonds with various years to maturity. Years to Maturity Yield to Maturity(%)...
Refer back to question 6A.l. Years to Maturity Yield to Maturity(%) 1...................................................................1.26...
There are three basic approaches to CVP analysis - equation approach, contribution margin approach, and the contribution ratio margin approach. How are these approaches similar and how do they...
There are six farmers in Great Britain with access to government land to graze their cows for free. They all must share the land. Each farmer has an individual incentive to put as many of his cows on...
Describe several common sources of yardstick data that you can use as bases for developing forecast assumptions

If the interest rate is 6% per year, how long will it take for your money to

Question:

Step by Step Answer:

According to the Rule of 72 at an interest rate of 6 it will take 726 12 years ...View the full answer

Fundamentals of Corporate Finance

Students also viewed these Corporate Finance questions