Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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How many years will it take for $14,000 to grow to $43,000 if you can earn an average rate of 8.8% per year
Expert Solution
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Step 1
Given information:
Future value of amount is $43,000
Present value is $14,000
Average rate is 8.8%
Step by stepSolved in 3 steps with 2 images
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Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.Similar questions
- Time periodarrow_forwardIf you want to accumulate $400,000 and you have $17,000 saved now, how many years will it take if you pay $490 per month and your investment pays 4% compounded monthly?arrow_forwardIf you want to accumulate $80,000 and you have $10,000 saved now, how many years will it take if you pay $100 per quarter and your investment account pays 5.5% compounded quarterly?arrow_forward
- Starting next year you plan to deposit $1000 each year into an account earning 9.25% effective annual return. How many years will it take for your account to grow to $20,000, if you increase your deposit each year by 5%? (Hint: use excel goal seek).arrow_forwardWhat is the present value of receiving $1,950 a year for 30 years if you expect a rate of return of 6% a year? $29,620 $10,681 $58,500 $26,841arrow_forwardYou want to invest $10,000 today to accumulate $16,000 for graduate school. If you can invest at an interest rate of 10% compounded annually, how many years will it take to accumulate the required amount?arrow_forward
- 5) Suppose you will need $12,000 in 3 years. How much must you invest per month in order to have $12,000 if money earns an annual rate 6% compounded monthly? Use excelarrow_forwardHow much should you invest each month in order to have $500,000 if your rate of return is 3.9% compounded monthly and you want to achieve your goal in 40 years?$How much interest will you earn?$How much should you invest each month in order to have $500,000 if you want to achieve your goal in 20 years?$If you deposit the amount you need to achieve your goal in 20 years, how much will your savings be worth after 10 years?$arrow_forward
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