Question: How long will it take for a $3,000 investment to grow to $10,000 if invested at 5% interest a. compounded annually? b. compounded quarterly?

How long will it take for a $3,000 investment to grow to $10,000 if invested at 5% interest

a. compounded annually?

b. compounded quarterly?

Step by Step Solution

★★★★★

3.49 Rating (159 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock

Answer As per given Condition 1Calculation of no of y... View full answer

blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Corporate Finance Questions!

Q:

Draw a first-law bar chart (see Figure 19.12) for the gas process in Figure EX19.6. Figure 19.12 FIGURE EX19.6 (a) Isothermal process: AEh = 0 (b) Isochoric process: W = 0 (c) Adiabatic process: Q =...

Q:

Assume that you are nearing graduation and that you have applied for a job with a local bank. As part of the banks evaluation (interview) process, you have been asked to take an exam that covers...

Q:

Assume that you have applied for a job with a bank. As part of the banks evaluation process, you have been asked to take an assessment that covers several financial analysis techniques. For each...

Q:

1) how long will it take $10,000 to grow to $12,000 if the investment earns interest at the rate of 4%/year compounded monthly? (Round your answer to one decimal place.) 2) Find the interest rate...

Q:

how do you do these Dana invests $35,000 into an account earning 5% interest compounded semiannually. How long will it take for her account to grow to $70,000? Answer (include units, round to two...

Q:

The half-life of radium-226 is 1620 yr. a. Write a function that relates the amount s of a sample of radium-226 remaining after t years. b. After 1000 yr, how much of a 500 g sample of radium-226...

Q:

(1 point) Suppose that a savings account pays an effective rate of interest of 10.5 percent. What is the equivalent annual compound interest rate if interest is compounded semi-annually? Answer =...

Q:

(1 point) Suppose that a savings account pays an effective rate of interest of 10.5 percent. What is the equivalent annual compound interest rate if interest is compounded semi-annually? Answer =...

Q:

Hi can you please answer the following questions to help me study for my calculus test tomorrow? If possible with steps and explanation because I'm having a difficult time understanding what to do....

Q:

help me :( 3. A culture of bacteria obeys the law of uninhibited growth. (a) (10 points) Suppose that 700 bacteria are present initially and there are 1200 bacteria after 2 hours. How many bacteria...

Q:

The answers are in the 3rd picture Page K 3 of 4 19. How long will it take for an investment of $80,000 to grow to $1,000,000 if the money is invested at 6%compounded continuously? 20. An amount of...

Q:

Note : Whenever you use a formula, please detail in sentences exactly how/why it works for your particular solution (merely plugging values into a formula does not by itself demonstrate...

Q:

Determine the normal force, shear force and moment at a section passing through point E of the two-memberframe. 400 N/m 2.5m 6 m

Q:

The union informs the public about a dispute and appeals to others to stop doing bushess with the employer during the dispute: A ) Strike B ) Plocketing C ) Slowdown D ) Corporate campaign

Q:

At a construction site, a 65.O-kg bucket of concrete hangs from a light (but strong) cable that passes over a light friction-free pulley and is connected to an SO.O-kg box on a horizontal roof (Fig....

Q:

Consider the plane wall of Figure 3.1, separating hot and cold fluids at temperatures T ,1 and T ,2 ' respectively. Using surface energy balances as boundary conditions at x = 0 and x = L (see...

Q:

A 15-g magnet D is released from rest in the position shown, falls a distance of 320 mm, and becomes attached at A to the 200-g steel bar AB. Assuming that the impact is perfectly plastic, determine...

Q:

In the circuit shown in Fig, C = 5.90 µF, E = 28.0 V, and the emf has negligible resistance. Initially the capacitor is uncharged and the switch S is in position 1. The switch is then moved to...

Q:

The double pulley shown has a mass of 14 kg and a centroidal radius of gyration of 165 mm. Cylinder A and block B are attached to cords that are wrapped on the pulleys as shown. The coefficient of...

Q:

Is this correct? What if the person you were interacting with at a college or university office was from a different culture than your own? Imagine that this person made a joke about his or her own...

Q:

What will be the rate of return on a perpetual bond with a $1,000 par value, an 8 percent coupon rate, and a current market price of? (a) $600, (b) $800, (c) $1,000, (d) $1,500? Assume that interest...

Q:

Which would be of greater concern to those who hold short-term investments: interest rate price risk or reinvestment rate risk? Explain.

Q:

Jason worked various jobs during his teenage years to save money for college. Now it is his twentieth birthday, and he is about to begin his college studies at the University of South Florida (USF)....

Q:

Explain why a simulation model with only discrete probability distributions produces the same results as the corresponding decision tree model even though it uses very different solution methods.

Q:

Explain why in decision analysis we are concerned with the expected value of information.

Q:

If you were to make Leah Sanchezs decision of how many calendars to order, what order amount would you chose? Why?