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6. Finding the Interest rate and the number of years The future value and present value equations also help in finding the interest rate and

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6. Finding the Interest rate and the number of years The future value and present value equations also help in finding the interest rate and the number of years that correspond to present and future value calculations. If a secunty currently worth $5,600 will be worth $7,369.22 seven years in the future, what is the implied interest rate the investor will eam on the security-assuming that no additional deposits or withdrawals are made? 7.60% O 1.32% 03.20% 4.00% for this investment to If an investment of $40,000 is earning an interest rate of 12.00%, compounded annually, then it will take reach a value of $78,952.92-assuming that no additional deposits or withdrawals are made during this time. Which of the following statements is true-assuming that no additional deposits or withdrawals are made? An investment of $50 at an annual rate of 5% will retum a higher value in five years than $25 tovested at an annual rate of 10% in the same time. An investment of $25 at an annual rate of 10% will return a higher value in five years than $50 invested at an annual rate of 5% in the same time 6. Finding the interest rate and the number of years The future value and present volue equations also help in finding the interest rate and the number of years that correspond to present and future value calculations In a security currently worth $5,600 will be worth $7,369.22 seven years in the future, what is the implied interest rate the investor will earn on the security-assuming that no additional deposits or withdrawals are made? 7.60% 1.32% 3:20% 04.00% It an trivestment of $40,000 is earning an interest rate of 12,00%, compounded annually, then it will take for this investment to reach a value of $78,952,01assuming that no additional deposits or withdrawals are made during this time SO7 years Which of the following statements is true-assuming that no additional deposits or withdrawals are made? 0.23 years An investment or $50 at an annual rate of 5% will retum a higher value in five years than $25 in 1.97 years runt rate of 10% in the same time. 6.00 years An investment of $25 at an annual rate of 10% will return a higher value in five years than $50 ilvester en annual rate of 5% in the same time

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