Question

Nicole wishes to double her investment in 6 years. If a financial institution offers her an...

Nicole wishes to double her investment in 6 years. If a financial institution offers her an interest rate that will enable her wish to come true, and assuming the interest is compounded quarterly, what would be the nominal interest offered by the financial institution?

a. 14.72%

b. 13.55%

c. 12.52%

d. 11.72%
Business   Economics   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
1)Sophie invested an amount of $24,000 in a mutual fund. After 3 years and 3 months...
1)Sophie invested an amount of $24,000 in a mutual fund. After 3 years and 3 months the accumulated value of her investment was $25,815.47. What is the quarterly compounded nominal interest rate of the investment? 2)Helen heard that she could triple her money in 27 years if she invested it in her friend's telecommunications business. What nominal interest rate compounded quarterly does the business offer? 3)If an investment grew to $15,000 in 2 years and the interest amount earned was...
You have been offered an investment that pays $500 at the end of every 6 months...
You have been offered an investment that pays $500 at the end of every 6 months for the next 3 years. The nominal interest rate is 12 percent; however, interest is compounded quarterly. What is the present value of the investment? 1. $2,458.66 $2,444.67 $2,451.73 $2,463.33 $2,437.56
Suppose $12,500 is invested in an account which offers 3.25% interest compounded quarterly (4 times a...
Suppose $12,500 is invested in an account which offers 3.25% interest compounded quarterly (4 times a year). (a) Express the amount A in the account as a function of the term of the investment t in years. (b) How much would be in the account in 7 years (assuming non deposits or withdrawals are made)? (c) How long will it take for the initial investment to double (round the nearest tenth of a year)?
Michelle wishes to establish a university fund for her son who is currently 8 years old....
Michelle wishes to establish a university fund for her son who is currently 8 years old. Required: a. If her son will need a monthly income of $900, how much does he need to be in place at the start of his university life (ie start of first-year) so that the $900 per month is achievable? Assuming that the interest over the three years while her son is at university is 6%p.a. compounded monthly and he is paid the $900...
Michelle wishes to establish a university fund for her son who is currently 8 years old....
Michelle wishes to establish a university fund for her son who is currently 8 years old. Required: a. If her son will need a monthly income of $900, how much does he need to be in place at the start of his university life (ie start of first-year) so that the $900 per month is achievable? Assuming that the interest over the three years while her son is at university is 6%p.a. compounded monthly and he is paid the $900...
1. For the next 6 years, you pan to make equal quarterly deposits of $600.00 into...
1. For the next 6 years, you pan to make equal quarterly deposits of $600.00 into an account paying 8% compounded quarterly. How much will be the total you have at the end of the time? 2. How much money will you have to deposit now if you wish to have $5,000 at the end of 8 years. Interest is to be at the rate of 6% compounded semiannually? 3. In the California “Million Dollar Lottery” a winner is paid...
a. An investment will pay you $17,000 in 8 years. The appropriate discount rate is 10...
a. An investment will pay you $17,000 in 8 years. The appropriate discount rate is 10 percent compounded daily. Required: What is the present value? b. You are planning to make monthly deposits of $60 into a retirement account that pays 9 percent interest compounded monthly. If your first deposit will be made one month from now, how large will your retirement account be in 16 years? c. You are planning to save for retirement over the next 25 years....
1. Julia purchased an investment grade gold coin today for $375,000. She expects it to increase...
1. Julia purchased an investment grade gold coin today for $375,000. She expects it to increase in value at a rate of 4.5% compounded annually for the next 6 years. How much will the coin be worth at the end of the sixth year? N I/Y PV PMT FV                                                                                                    2. Moon has been investing $2,500 quarterly for the past 10 years in an equity mutual fund. How much is the fund worth now assuming she has earned 8.5% compounded...
6. An asset is purchased for $11,000. It has an estimated residual value of $2,000 and...
6. An asset is purchased for $11,000. It has an estimated residual value of $2,000 and an estimated useful life of six years. After two years of use, the estimated residual value is revised to $1,000. Assuming straight-line depreciation, depreciation expense in year three of use would be (if necessary, round your answer to the nearest whole dollar): a. $1,286 b. $1,250 c. $1,100 d. $1,750 10. Additions and Betterments are charged (debited) to the asset's accumulated depreciation account. a....
1.What is the discount rate assuming the present value of $840 at the end of 1-year...
1.What is the discount rate assuming the present value of $840 at the end of 1-year is $765? 2.What is the Future value of $3,500 deposited for 12 years at 5% compounded annually? 3. If $2,800 is discounted back 4 years at an interest rate of 8% compounded semi-annually, what would be the present value? 4. Determine the future value of $6,000 after 5 years if the appropriate interest rate is 8%, compounded monthly. 5. Consider a newlywed who is...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT