Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

If an investment of $ 3 0 , 0 0 0 is earning an interest rate of 8 . 0 0 % , compounded annually,

If an investment of $30,000 is earning an interest rate of 8.00%, compounded annually, then it will take for this investment to reach
a value of $37,791.36-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 return a higher value in five years than $25 invested 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.
image text in transcribed

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The Economics Of Money Banking And Finance

Authors: Howells, Keith Bain

3rd Edition

0273693395, 978-0273693390

More Books

Students also viewed these Finance questions