Question

17. You want to invest an amount of money today and receive back ten times that...

17.

You want to invest an amount of money today and receive back ten times that amount in the future. You expect to earn 12.2 percent interest. Approximately how long must you wait for your investment to grow ten times in value?

6 years

9 years

12 years

15 years

20 years

18.

You have \$1,100 today and want to triple your money in 5 years. What interest rate must you earn if the interest is compounded annually?

18.08 percent

19.90 percent

22.15 percent

24.57 percent

27.21 percent

19.

Assume the total cost of a college education will be \$400,000 when your child enters college in 25 years. You presently have \$25,000 to invest. What annual rate of interest must you earn on your investment to cover the cost of your child's college education?

9.65 percent

10.33 percent

11.00 percent

11.33 percent

11.72 percent

 Ans 17 Put in calculator FV 1000 PV -100 PMT 0 I 12.20% Compute N 20.00 ans= 20 years Ans 18 Put in calculator FV 3300 PV -1,100 PMT 0 N 5 Compute I 24.57% Ans = 24.57% Ans 19 Put in calculator FV 400,000 PV -25,000 PMT 0 N 25 Compute I 11.72% Ans = 11.72%

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