Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

image text in transcribed
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 security currently worth $2,000 will be worth $3,427.65 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? 1.71% 5.83% 6.40% 8.00% If an investment of $30,000 is earning an interest rate of 12.00%, compounded annually, then it will take this investment to reach a value of $42,147.84-assuming that no additional deposits or made during this time. 0.12 years 7.12 years 3.00 years 1.41 years r are rolowing statements is true-assuming that no additional deposits or withdrawals are made? Q If you invest $1 today at 15% annual compound interest for 82.3753 years, you"Il end up with $100,000. If you invest $5 today at 15% annual compound interest for 82.3753 years, you'll end up with $100,000

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

Financial Modeling An Introductory Guide To Excel And VBA Applications In Finance

Authors: Joachim Häcker, Dietmar Ernst

1st Edition

1137426578, 978-1137426574

More Books

Students also viewed these Finance questions