Question
Please show work 1. If a security of $8,000 will be worth $13,711 seven years in the future, assuming that no additional deposits or withdrawals
Please show work
1. If a security of $8,000 will be worth $13,711 seven years in the future, assuming that no additional deposits or withdrawals are made, what is the implied interest rate the investor will earn on the security?
4.80%
6.00%
8.00%
9.60%
2. If an investment of $30,000 is earning an interest rate of 5.00% compounded annually, it will take __?___ for this investment to grow to a value of $38,288.45assuming that no additional deposits or withdrawals are made during this time?
A. .03 years B. 1.3 years. C. 5 years D. 7.8 years
3. Which of the following statements is true, assuming that no additional deposits or withdrawals are made?
A) 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.
B) 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.
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