The interest rate that will triple an initial investment in 10 years is equal to ________. a. 11.61% b. 29.99% c. 19.97% d. 15.47% | Homework.Study.com (2024)

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• How many years will it take an investment to triple if the interest rate is 8% compounded annually?
• At an interest rate of 15% per year, an investment of $100,000 one year ago is equivalent to how much now?
• How many years would it take for money to triple in value at 20% per year simple interest?
• How long will it take for $10,000 invested at 5% per year, compounded continuously, to triple in value?
• At 10 percent interest, how long does it take to triple your money?
• Are interest rate and annual percentage rate the same?
• A manufacturing company made an investment 2 years ago that is now worth $1,500000. How much was the initial investment: (a) at a simple interest rate of 10% per year? (b) at an interest rate of 10
• A manufacturing company made an investment 10 years ago that is now worth $1500000. How much was the initial investment: (a)At a simple interest rate of 10% a year? (b)At an interest rate of 10% a
• Find the interest. \\ Principal: $1600 Rate: 2.5% Time in Months: 9
• What would the interest rate be if the principle is $7,000 and after four years the balance is $8,050?
• Determine the interest rate earned on a $3,050 deposit when $3,650 is paid back in one year.
• The rate of return on an investment is the interest rate that is earned on the: A) money recovered from the investment. B) the unrecovered balance of the investment. C) initial investment. D) income from the investment.
• Does the interest rate stay the same after a saving bond matures?
• Is a fixed interest rate applied annually?
• For a nominal interest of 16%, what is the effective interest if interest is (a) compounded quarterly? (b) compounded monthly? (c) compounded continuously?
• If you invest 1,000 in a savings account that pays 4 percent every year, how long would it take you to triple your money?
• How many years does it take to save $4,341 if you start with $810 and earn a 9% annual interest rate?
• Determine the effective quarterly interest rate if the nominal annual interest rate is 18% compounded monthly.
• How many years would it take for an investment of $280,000 to accumulate to at least $425,000 at 15% per year interest?
• Calculate the present value of a perpetuity that pays $1,000 at the start of each year, given an interest rate of 5%.
• Does annual percentage rate consider interest on interest?
• Suppose the term structure of interest rates are not flat. The one-year spot rate is 6.01%/year, the two-year and three-year spot rates are both 5%/year. What are the forward interest rates for the third year?
• Using a 10% interest rate, for what value of B does the present value equal 0?
• How many years does it take to save $4,341 if you start with $810 and earn a 9% annual interest rate? Explain your answer.
• How many years does it take money to double at a complex 10% interest rate?
• Suppose an initial investment of $100 will return $50/year for three years(assume the $50 is received each year at the end of the year). Is this a profitable investment if the discount rate is 20%?
• What is the difference between interest rate and annual percentage rate?
• An investment will pay you $58,000 in 7 years. If the appropriate discount rate is 10% compounded daily, what is the present value?
• Calculate the present value of $400 paid annually for 10 years at an interest rate of 14%.
• You would like to have $ 50000 in 15 years. To accumulate this amount you plan to deposit each year an equal amount in the bank, which will earn 7 percent interest compounded annually. Your first paym
• Hein invests R12,500 for k years at a compound interest rate of 9 p.a. compounded quarterly. At the end of k years, his investment is worth R30,440. calculate the value of k.
• If the future amount after 6 years 6 months is $5,412 and the interest rate is 5% compounded semi-annually, determine the interest amount.
• First bank of Midesto Medeque pays a 5.45% nominal rate of interest compounded weekly. What is the effective rate of interest? Options A. 5.60% B. 5.65 C. 5.70 D. 5.75 E. None of the above
• Is simple interest a fixed interest rate?
• For an interest rate compounded annually of 7%, what is the equivalent interest rate compounded: A) Semi-annually B) Quarterly C) Monthly D) Weekly E) Daily
• Determine the amount of money in a savings account at the end of 3 years, given an initial deposit of $5,000 and a 16 percent annual interest rate when interest is compounded: a: annually b: semiannually c: quarterly
• What is the accumulated value of periodic deposits of $30 at the beginning of every quarter for 18 years if the interest rate is 3.68% compounded quarterly?
• How many years will P100,000 earn a compound interest of P50,000 if the interest rate is 9% compounded quarterly? *A. 3.25 years *B. 5.86 years *C. 4.55 years *D. 2.11 years
• A $25,000 bond has interest payable at 4% per year compounded quarterly. The bond will mature in 10 years. What is the present worth of the bond if the interest rate is 8% per year compounded quarterl
• Is a fixed interest rate applied monthly?
• First bank of Sweetwater pays a 14% nominal rate of interest compounded monthly. What is the effective rate of interest? Options: A) 14.65% B) 14.74% C) 14.82% D) 14.93% E) none of the above
• Compounding interest means interest accrues
• A bond you are evaluating has a 7.5% coupon rate (compounded semi-annually), a $1,000 face value, and is 10 years from maturity. a. If the required rate of return on the bond is 6%, what is its fair present value? b. If the required rate of return on the
• Prepare amortization tables for issuance of the bonds sold at 102 for the first three interest payments. Annual Interest PeriodsInterest to Be PaidInterest Expense to Be RecordedPremium Amortizati
• How many periods are in a 6-year, 8% bond with an effective interest rate of 6% and paid semiannually
• If the investment year rates are described by the function: 1+i_t^y=(1.25-0.01t)^{1+0.02y} for 1 \le t \le 5 and 1 \le y \le 10, what would be the accumulated value of $1,000 invested in year y=3 in t
• Given a nominal interest rate of 6% compounded quarterly, determine the sum of the equivalent nominal rate of interest payable monthly and the equivalent nominal rate of discount convertible semiannually.
• If the interest rate is 10 percent, what is the present value of $10 received one year from now? A. $10.10 B. $10.05 C. $9.09 D. $10.11
• Annual cash flows from two competing investment opportunities are given. Each investment opportunity will require the same initial investment.Requirement 1. Assuming a 12% interest rate, which invest
• A bond was purchased for $2,100. Interest of $115 was paid every 6 months. The bond was sold at the end of the third year for $2,000. What is the annual effective rate of return earned on this bond?
• If the real interest rate is 6% and the inflation rate is 12%, then the nominal interest rate equals a) 2%. b) 0.5%. c) 6%. d) 18%.
• What is the rate of interest if your money doubles every 6 years? This is also known as Rule of 72.
• If the interest rate is 9.5% compounded continuously, what is the required quarterly payment to repay a loan of $15000 in four years?
• How do you find implicit interest rate in finance?
• What is the present value of a $10,000 bond, 7%, 5-year that pays interest annually? Market interest rate is 10%.
• You invest a single amount of $10,000 for 5 years at an interest rate of 10%. At the end of 5 years, you take the proceeds and invest them for 12 years at an interest rate of 15%. How much will you have after 17 years?
• Calculate the effective annual rate for 9.4% compounded quarterly.
• Find the following values: a. An initial $500 compounded for 1 year at 6% b. An initial $500 compounded for 2 years at 6% c. The present value of $500 due in 1 year at a 6% discount rate d. The pr
• Consider a $2,200 deposit earning 9% interest per year for 6 years. How much total interest is earned on interest? A. $301.62 B. $1,489.62 C. $118.80 D. $1,188
• You have a present value of $432, a future value of $896, and 10 years as the number of periods. What is the interest rate?
• Compute the price of a 3.8% coupon bond with 18 years left to maturity and a market interest rate of 7%. Compute the price again if interest payments are paid semi-annually (solve using semi-annual compounding). The par value is $1,000. Annual Compounding
• # ASSUME COMPOUND INTEREST EXCEPT WHERE NOTED AT A 8% ANNUAL INTEREST RATE, $1000 NOW IS EQUIVALENT TO HOW MUCH MONEY TEN YEARS FROM NOW? IF $100 IS DEPOSITED AT THE END OF EACH MONTH IN A SAVINGS A
• You borrowed $160,000 at 9% per year, compounded quarterly. It is to be paid back over 5 years in equal quarterly payments. a) How much interest is in the 6th payment? b)How much principal is in the 6
• A series of equal quarterly payments of $5,000 for 10 years is equivalent to what future lump-sum amount at the end of 15 years at an interest rate of 9% compounded continuously?
• How do you calculate the fixed deposit interest rate?
• John takes a loan of $700,000 at 10% interest. He has to repay the loan which begins 7 years from now. What should be the annual payment if the amount of loan together with interest is to be paid in 9 equal installments?
• Find the IRR of an investment having an initial cash outflow of $213,000. The cash inflows during the first, second, third, and fourth years are expected to be $65,200, $96,000, $73,100, and $55,400 respectively. Assume that r is 10%.
• How do you find present value of a bond when interest is compounded monthly?
• You have just paid $1,135.90 for a bond which has 10 years before it matures. It pays interest every six months. If you require an 8% return from this bond, what is the coupon rate on this bond? The par value is $1,000.
• If the interest rate sensitivity of investment is high, then the _____ curve will be relatively _____.
• Calculate the value of a bond that matures in 19 years and has a $1,000 par value. The annual coupon interest rate is 15 percent, and the market's required yield to maturity on a comparable-risk bond is 16 percent. The value of the bond is ____.
• You only contribute $10 per month for the first year to a savings account that earns 8% interest compounded yearly. How much is in the account after three years?
• Find the annual worth in years 1 through 10 of an investment that starts at $8000 in year 1 and increases by 10 percent each year. The interest rate is 10 percent per year.
• XYZ Corp. issued a 6% coupon, $1,000 par, 30-year bond. It is now 6 years to maturity. What is the price of the bond if the yield to maturity (market interest rate) is 10%? a- $1000 b- $825.46 c- $705.33 d- $1091.52
• Determine the market price of a $300,000, ten-year, 10% (pays interest semiannually) bond issue sold to yield an effective rate of 12%.
• How do you find the times-interest-earned ratio in finance?
• 1. Which would you prefer? (a) An investment paying interest of 12% compounded annually. (b) An investment paying interest of 11.7% compounded semiannually. (c) An investment paying interest of 11.5% compounded continuously. 2. What would each investment
• A 6.50% coupon bond with 18 years left to maturity is offered for sale at $1,035.25. What yield to maturity (interest rate) is the bond offering? Assume interest payments are paid semi-annually and solve using semi-annual compounding. The par value is $1,
• How much should you pay for a $1,000 bond with a 10% coupon, annual payments, and five years to maturity if the interest rate is 12%?
• How much should you pay for a $1,000 bond with a 12% coupon, annual payments, and 5 years to maturity if the interest rate is 10%?
• How much must be invested now at 6.25% interest to produce $3,000 at the end of every year for 10 years?
• How is a fixed rate of interest calculated?
• An investment of $10,000 six years ago has accumulated to $20,000 now. The annual interest rate on this investment is........
• If an inheritance is compounded annually at 11% and reaches a total of $100,000 after 21 years, what would the starting amount of the investment be?
• If someone has a $2,000 dollar investment and someone else can offer an investment opportunity making $4,600 in four years. Compute interest rate.
• Calculate the price of a 5.2 % coupon bond with 18 years left to maturity and a market interest rate of 4.6 %. (Assume interest payments are semiannual.)
• If Aquatronics Inc. wants its investments to double in value in 4 years, what rate of return would it have to make on the basis of (a) simple interest, and (b) compound interest?
• How do you find combined market interest rates?
• You deposit $14,000 annually into a life insurance fund for the next 10 years, after which time you plan to retire. a. If the deposits are made at the beginning of the year and earn an interest rate
• If you are twenty years old and can save $1,000 a year for the next five years, how much would you have at the age of 67 if you invested it in the stock market at an interest rate of 8%?
• Olaf invested $10000 at 12% compounded monthly. This investment will be given to his three children when they reach 20 years old. Now his three children are 15,16 and 19 years old. If his three childr
• Suppose the term structure of interest rates are not flat. The one-year spot rate is 6.01%/year, the two-year and three-year spot rates are both 5%/year. What are the forward interest rates for the second year?
• If you deposit $12,000 in a bank account that pays a 4% interest compounded monthly for five years, what would be your economic loss if the general inflation rate is 5% during that period?
• Determine the interest payment for the following three bonds . Assume a $1,000 par value. 4.15 percent coupon corporate bond paid semiannually 4.80 percent coupon. Treasury note Corporate zero coup
• Calculate the value of a bond that matures in 15 years and has a 1,000 par value. The annual coupon interest rate is 14 percent, and the market's required yield to maturity on a comparable-risk bond is 13 percent. What is the value of the bond?
• A series of equal quarterly payments of $10,000 for 15 years is equivalent to what future worth amount at an interest rate of 6% compounded at the given intervals? A) quarterly B) monthly C) continuously
• A company that manufactures regenerative thermal oxidizers made an investment 10 years ago that is now worth $1300000. How much was the initial investment at an interest rate of 15% per year (a) simpl
• Consider three 30-year bonds with annual coupon payments. One bond has a 10% coupon rate, one has a 5% coupon rate, and one has a 3% coupon rate. If the yield to maturity of each bond is 5%, what is the price of each bond per 100 face value? Which bond tr
• Compute the price of a 3.8 percent coupon bond with 18 years left to maturity and a market interest rate of 7 percent. Compute the price again if interest payments are paid semi-annually (solve using semi-annual compounding). Par value is $1000. Provide
• What is the payback period at an interest rate of 10% per year for an asset with initial cost of $20,000; salvage value of $1,000 whenever it is sold and annual revenue of $2,500 per year?