How many years will it take an investment to triple if the interest rate is 4%compounded monthly?a) Between 37 and 39 yearsb) Between 47 and 49 yearsO c) Between 27 and 29 yearsd) Between 17 and 19 yearsO e) None of the answers is correct Future worth, F, has to be found from apresent amount, P, five years from now at aninterest rate of 6% per year, compoundedmonthly. What interest rate must be used inthe F/P factor, (F/P,i%,n), when n is 10?How many years will it take an investment totriple if the interest rate is 4% compoundedmonthly?Question 1 (UFuture worth, 5, has to be found from a present amount, P. five years from now at aninterest rate of 6% per year, compounded monthly. What interest rate must be usedin the F/P factor, (F/P.1%,n), when n is 10?O a) Between 0.020-0.021O b) None of the answers is correctO c) Between 0.040-0.041d) Between 0.070-0.071e) Between 0.010-0.011

Introduction: The duration that an investment has to be made in order to earn a certain value in the…

Answered: How many years will compounded monthly

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How many years will compounded monthly

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

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Question

How many years will it take an investment to triple if the interest rate is 4%
compounded monthly?
a) Between 37 and 39 years
b) Between 47 and 49 years
O c) Between 27 and 29 years
d) Between 17 and 19 years
O e) None of the answers is correct

Future worth, F, has to be found from a
present amount, P, five years from now at an
interest rate of 6% per year, compounded
monthly. What interest rate must be used in
the F/P factor, (F/P,i%,n), when n is 10?
How many years will it take an investment to
triple if the interest rate is 4% compounded
monthly?
Question 1 (U
Future worth, 5, has to be found from a present amount, P. five years from now at an
interest rate of 6% per year, compounded monthly. What interest rate must be used
in the F/P factor, (F/P.1%,n), when n is 10?
O a) Between 0.020-0.021
O b) None of the answers is correct
O c) Between 0.040-0.041
d) Between 0.070-0.071
e) Between 0.010-0.011

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