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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 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 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 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 rate is needed to double an investment over five years?