Question

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?

Group of answer choices

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?

Group of answer choices

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?

Group of answer choices

9.65 percent

10.33 percent

11.00 percent

11.33 percent

11.72 percent

Answer 1

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%