Business, 07.04.2020 21:16, lorrainelopez

Finding the interest rate and the number of yearsThe 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.

1. If a security currently worth $12,800 will be worth $17, 983.08 three 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?

a. 3.20%

b. 1.22%

c. 0.24%

d. 4.00%

2. If an investment of $50,000 is earning an interest rate of 12.00%, compounded annually, then it will take how many years for this investment to reach a value of $98691.13 - assuming that no additional deposits or withdrawal are made during this time?

3. Which of the following statements is true assuming that no additional deposits or withdrawal are made?

a. 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

b. 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

Answers: 1

Show answers

Other questions on the subject: Business

Business, 22.06.2019 13:40, moneytt2403

Computing equivalent units is especially important for: (a) goods that take a relatively short time to produce, such as plastic bottles. (b) goods with sustainability implications in their production processes. (c) goods that are started and completed during the same period. (d) goods that take a long time to produce, such as airplanes.

Answers: 2

continue

Business, 22.06.2019 15:30, TerronRice

In 2015, lori assigned a paid-up whole life insurance policy to an irrevocable life insurance trust (ilit) for the benefit of her three children. the ilit contained a crummey provision for the benefit of each child. at the time of the transfer, the whole life insurance policy was valued at $200,000, and since lori had not made any other taxable gifts during her lifetime, she did not owe any gift tax. lori died in 2016, and the face value of the whole life insurance policy of $2,000,000 was paid to the ilit. regarding this transfer, how much is included in lori’s gross estate at her death?

Answers: 1

continue

Business, 22.06.2019 19:00, chloesmolinski0909

Why is accountability important in managing safety

Answers: 2

continue

Business, 22.06.2019 23:00, cs101200

The discussion of the standards for selection of peanuts that will be used in m& ms and the placement of the m& m logo on the candies speaks to which building block of a sustainable competitive advantage:

Answers: 1

continue

Do you know the correct answer?

Finding the interest rate and the number of yearsThe future value and present value equations also h...