In: Finance
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 $9,200 will be worth $12,106.57 seven years in the future, what is the implied interest rate the investor will eam on the security-assuming that no additional deposits or withdrawals are made?
7.60% 4.00% 3.20% 1.32%
If an investment of $50,000 is earning an interest rate of 8.00%, compounded annually, then it will take _______ for this investment to reach a value of $62,985.60-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?
It takes 14.21 years for $500 to double if invested at an annual rate of 5%.
It takes 10.50 years for $500 to double if invested at an annual rate of 5%.