How many years will it take money to quadruple if it earns 10% compounded semi-annually?

Expert Solution

5. annual rate = 10% compounded semi annually

Effective Annual Interest rate = (1 + r/n) ^n - 1

where, r = nominal annual rate

N = no of times compounding

= (1 + 10% / 2)^2 – 1

= (1.05 )^2 – 1

= 0.1025 or 10.25 %

With rule of 144,time it takes to quadruple investment = 144 / 10.25% = 14.05 years

Rahul Sunny answered 2 years ago

A deposit of $5,000 earns interest at 4% compounded semi-annually. After three-and-a-half years, the interest rate...

A deposit of $5,000 earns interest at 4% compounded semi-annually. After three-and-a-half years, the interest rate is changed to 4.5% compounded quarterly. How much is the account worth after 7 years? Jan is saving for a new bike that will cost $800. She has $500, which she has invested at 7% compounded semi-annually. How many years will it be (approximately) until she has $800? How long will it take for money to double if it is compounded quarterly at 6%?

At an annual interest rate of 7%, how many years does it take to quadruple your...

At an annual interest rate of 7%, how many years does it take to quadruple your money?

how long will it take money to double itself if invested at 5% compounded annually?

a company deposits 3700 a month into an account that earns 9% interacest compounded semi annually...

a company deposits 3700 a month into an account that earns 9% interacest compounded semi annually how much money will the company have accumulated in 6 years assume no interperiod compunding

How long will it take $10,000 to reach $50,000 if it earns 10% annual interest compounded...

How long will it take $10,000 to reach $50,000 if it earns 10% annual interest compounded semiannually? 17 years 33 years 16.5 years (correct) 8.5 years You get a twenty-year amortized loan of $100,000 with a 5% annual interest rate. What are the annual payments? $ 8,718 $37,689 $ 4,762 $ 8,024 (correct) You get a 25-year loan of $150,000 with an 8% annual interest rate. What are the annual payments? $14,052 (correct) $ 2,052 $13,965 $13,427

I want to quadruple my money in 10 years. If I earn 4.427% eachquarter, how...

I want to quadruple my money in 10 years. If I earn 4.427% each quarter, how many years will it take for me to achieve that objective?

A 25 years $500000 mortgage at 4.30% compounded semi annually is repaid with monthly payment what...

A 25 years $500000 mortgage at 4.30% compounded semi annually is repaid with monthly payment what is size of monthly payment and balance of mortgage at end of 6 years and how much did the amortization period shorten by if the monthly payment are increased by $125 at end of year six?

You plan to borrow $15,000 for 3 years. The interest rate is 8% compounded semi-annually. The...

You plan to borrow $15,000 for 3 years. The interest rate is 8% compounded semi-annually. The terms require you to amortize the loan with equal payments made every period. a) Calculate the amount of payment you would be paying every period? b) Set-up an amortization schedule

What will 6000 USD invested for 10 years at 6 percent compounded annually grow to? How...

What will 6000 USD invested for 10 years at 6 percent compounded annually grow to? How many years will it take 400 USD to grow to 1 671 USD if it is invested at 10 percent compounded annually? At what rate would 1000 USD have to be invested to grow to 4046 USD in 10 years? Calculate the future sum of 1000 USD, given that it will be held in the bank for 5 years and earn 10 percent compounded...

$9,800 is deposited for 10 years at 6% compounded annually, determine the FV?

Question