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If money is invested at 6% per year, after approximately how many years will the interest earned be equal to the original investment?
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- Suppose that you have an investment that earns 0% in the first year, but 20.7% in the second year. What rate of interest, compounded annually, would yield the same return after two years? (Answer in percentage)What is the present value of an investment that will pay $1,000 in one year's time, and $1,000 every year after that, when the interest rate is 8%?What is the value of today of an investment that will pay $100 per year for 5 years. Assume first payment is made 1 year from today and the interest rate is 7%?
- If you want an investment to double in three years, what annual interest rate must it earn?What interest rate, when compounded annually, is involved if an initial investment of $4000 turns into $10000 in 6 years?How many years will it take an investment to quadruple if the interest rate is9% compounded annually?
- An investment pays an annual cash flow of $1 forever. The appropriate discount rate is 4% per year. What is the present value of this investment opportunity?At what annual interest rate, compounded annually, would $500 have to be invested for it to grow to $1,942.45 in 11 years? At what annual interest rate, compounded annually, would $500have to be invested for it to grow to $1,942.45 in 11 years?Consider an investment of $X. Suppose that you are able to earn 10% a year on your investment rather than 5% per year over 7 years. At the end of those 7 years, how much extra interest (compared to the original 5%) will you have earned on the investment?
- About how many years would it take for your investment to grow if it were invested at an APR of 9 percent compounded ? If you invest $1 at an APR of 9 percent compounded , about how many years would it take for your investment to grow to $4?What is the future value of a series of $4,500 annual payments received at the end of each of the next 6 years' worth if they are invested at an annual rate of return of 7%?Approximately what interest rate is needed to double an investment over eight years?