Question

On your birthday you received $100 which you invested at 6.5% interest, compounded annually. That investment...

On your birthday you received $100 which you invested at 6.5% interest, compounded annually. That investment is now worth $3,500. How many years have past?

Homework Answers

Answer #1
Future value FV= PV × (1+r)^N
Payments to achieve future value N= Log(FV/PV)/ Log(1+r)
Future value FV=                              3,500
Present value PV=                                 100
Interest rate:
Stated rate 6.5%
/ number of compounding periods per year 1
Interest rate per period r= 6.5%
Periods to achieve future value N= Log( 3500/100 )/ Log( 1+ 0.065 )
N= 56.46
Years to achieve future value = 56.46

Numer of years past is 56.46

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
If you invested $1 today an interest rate of 7%, and the interest compounded annually, how...
If you invested $1 today an interest rate of 7%, and the interest compounded annually, how much would your dollar be worth in 5 years? Round your answer to two decimal places. show work with excel use control ~
What is the future value of $100 invested at 10% compounded annually for 3 years? What...
What is the future value of $100 invested at 10% compounded annually for 3 years? What is the future value of $100 invested at 10% compounded annually for 10 years? What is the present value of an investment that will give you $100 after 10 years with a rate of 10% compounded annually? You end up with $20,000 after investing for 20 years at 8% annually. What was the PV? Maverick Jane places $800 in a savings account paying 6%...
Predict the expression that represents the total after a) $100 is invested at 6% interest, compounded...
Predict the expression that represents the total after a) $100 is invested at 6% interest, compounded semi-annually, for 10 years. b) $100 is invested at 6% interest, compounded semi-annually, for 15 years. c) $100 is invested at 6% interest, compounded quarterly, for 1 year. d) $100 is invested at 6% interest, compounded quarterly, for 20 years. Enter the expressions into a calculator. Round answers to the nearest cent.
Fifteen years ago, you deposited $12,500 into an investment fund. Five years ago, you added an...
Fifteen years ago, you deposited $12,500 into an investment fund. Five years ago, you added an additional $20,000 to that account. You earned 8%, compounded semi-annually, for the first ten years, and 6.5%, compounded annually, for the last five years. Required: a) What is the effective annual interest rate (EAR) you would get for your investment in the first 10 years? b) How much money do you have in your account today? c) If you wish to have $85,000 now,...
How many years will it take for a $ 2,000 investment, at 8% interest compounded semi-annually,...
How many years will it take for a $ 2,000 investment, at 8% interest compounded semi-annually, to grow to $ 12,000. In that interest, how many years will it take for the investment to reach the amount of $ 12,000?
Fifteen years ago, you deposited $12,500 into an investment fund. Five years ago, you added an...
Fifteen years ago, you deposited $12,500 into an investment fund. Five years ago, you added an additional $20,000 to that account. You earned 8%, compounded semi-annually, for the first ten years, and 6.5%, compounded annually, for the last five years. Required: 1. a) What is the effective annual interest rate (EAR) you would get for your investment in the first 10 years? 2. b) How much money do you have in your account today? 3. c) If you wish to...
At what annual interest rate, compounded annually, would $490 have to be invested for it to...
At what annual interest rate, compounded annually, would $490 have to be invested for it to grow to $2.009.48 in 13 years?
if $1000 invested in an account with 9% interest compounded annually, proximately how many years will...
if $1000 invested in an account with 9% interest compounded annually, proximately how many years will it take for the amount to double? a. slightly more than eight years b. exactly nine years c. five years d. slightly less than seven years
1. Suppose that P200,000.00 is invested at a certain rate of interest compounded annually for two...
1. Suppose that P200,000.00 is invested at a certain rate of interest compounded annually for two years. If the accumulated interest at the end of 2 years is P42,000.00, find the rate of interest. 2.  A loan for P170,000 is to be paid in three years at the amount of P185,000 compounded annually. What is the effective rate of money? 3. If P3000 accumulates to P4500 when invested at a simple interest for ten years, what is the rate of interest?
How much will $100 grow to if invested at a continuously compounded interest rate of 7.5%...
How much will $100 grow to if invested at a continuously compounded interest rate of 7.5% for 7 years? (Do not round intermediate calculations. Round your answer to 2 decimal places.) How much will $100 grow to if invested at a continuously compounded interest rate of 7% for 7.5 years? (Do not round intermediate calculation
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT