If you have an investment that is earning 5.5% annually, use the Rule of 72 to estimate how many years it will take for your investment to double.

Q: Suppose an investment earns 2.5% interest compounded continuously. Find the future value of a $3400…

A: Present value is an estimate of the present value of future cash values ​​that may be received at a…

Q: if you can earn 2.5% per year  on your investment how  long  will it take to double your money

A: According to the given question, we are required to compute how long the time period will take to…

Q: You are going to invest $6829 in 1 years and $7200 in 4 years.  If you expect to earn a return of…

A: The time value of money is a fundamental concept in finance that recognizes the idea that money…

Q: u are able to invest $100 at the end of 1 year into an investment earning 6%. At the end of year 2,…

A: Future value of money increases with due to accumulation of interest over the period of time of…

Q: How much is the sum of the present value of the expected return over those periods

A: Cash Flows (Year 1-10) (CF) =  $15,000 per year Annual interest rate (r) = 5% Time Period (t) = 10…

Q: About how many years would it take for your investment to grow sixfold if it were invested at an APR…

A: Using NPER in Excel

Q: Assume you can earn 12% per year on your investments. a. If you invest $60,000 for retirement at age…

A: Part 2:Explanation:step 1:Understand the formula for calculating future value (FV):FV = C * (1 +…

Q: Double your money-Rule of 72. Approximately how long will it take to double your money if you get an…

A: Step 1 Time value of money The idea of the time value of money (TVM) holds that a quantity of money…

Q: Calculating the Number of Periods You've been offered an investment that will pay you 7 percent per…

A: We know,  Future value = Present value x (1+r) ^ t where, r= periodic interest rate t = number of…

Q: Consider an initial investment of $100 using an accumulation function which is a second-degree…

A: The accumulation function is a mathematical expression that defines the value of time with respect…

Q: If an investment advisor promises to double your money in 6 years, she is promising an annual rate…

A: Using the following formula we can compute annual rate of return.Future Value (FV) = Present Value…

Q: An investment will pay you $4,611.9 in 3 years if you pay $1,376.68 today. What is the implied rate…

A: Rate of return = (Future value / Present value)^(1/Time) - 1 where, Future value =  $4,611.9 Present…

Q: Use logarithms to solve the problem. How long will it take an investment of $7000 to triple if the…

A: Future Value = Present Value (1 + g)n

Q: Use logarithms to solve the problem. How long will it take $11,000 to grow to $19,000 if the…

A: Compound = monthly = 12 Present value = pv = $11,000 Future value = fv = $19,000 Interest rate = r =…

Q: Double your money-Rule of 72 Approximately how long will it take to double your money if you get an…

A: The Rule of 72 is a simple way to determine how long an investment will take to double given a fixed…

Q: Consider an investment which pays 1.05 times your original payment (which is not returned) after two…

A: The return on any investment is given by  R = (F - P)/P  * 12/n Where P = value invested F = value…

Q: If you have 1M today and have decided to invest in an investment that earns 10% interest, how much…

A: Lets understand the basics. When we have a investment available and rate of return available then we…

Q: You have two investment opportunities. The interest rate for both investments is 8%. Interest on the…

A: Lets understand the basics.Compounding is known as a number of times amount gets compounded once…

Q: earns an annual interest rate of 12 percent compounded Semi annually. What is the effective annual…

A: The given problem can be solved using EFFECT function in excel. EFFECT function computes effective…

Q: An investment pays simple interest, and triples in 14 years. What is the interest rate?

A: The sum of money that is charged or gained for the usage of money is known as interest, and it is…

Q: An investment promises two payments of 650 on dates two and four months from today if the required…

A: The present value is the current value of future cash flows. Investors and money lenders use this…

Q: You invest $10,000 into a money market account that pays interest on a semi-annual basis (e.g.,…

A: We use NPER function in excel by taking present value as 10000 and future value as 20000 and…

Q: If the interest rate is 5%, then the capitalized value of an investment that would be $ pays $8 per…

A: The capitalized value of an investment is the present value of the stream of income that the…

Q: A project will double your investment in one year with probability 0.58, otherwise you'll lose half…

A: Standard deviation of stock is computed as follows:-Standard deviation of stock = whereR= returnER=…

Q: Suppose a person has a retirement investment portfolio that consistently earns 5.1% annually. In…

A: Perpetuity is an annuity that continues for an indefinite period. In perpetuity series of cash flows…

Q: How many years will it take an investment to triple if the interest rate is 6% compounded annually?

A: In the given question we are required to compute the number of years that will make the investment…

Q: Approximately how long will it take to double your money if you get an annual return of 3.3%​,…

A: Time for Investment double = 72/ rate of return

Q: Suppose you found an investment that earns 6.0% each year. Suppose you want to withdraw 24,000…

A: Given information: Investment earns 6% Future value is $24,000 Number of years is 4

Q: About how many years would it take for your investment to grow if it were invested at an APR of 9…

A: In the given question we require to calculate the the number of years that make the investment…

Q: If a particular investment will pay $500, 5 months from now, and an additional $500, 9 months from…

A: Present value of future amount is computed as follows:-PV= wherePV= present valueFV = future valuer=…

Q: About how many years would it take for your investment to grow threefold if it were invested at an…

A: In the given problem we require to calculate the number of years that will make the investment three…

Q: An investment pays $40 annually, forever, starting 8 years from now (at t=8). The effective annual…

A: The present value is the present worth of the amount that will be paid or received in the future.

Q: you put $200 per month in an investment plan that pays an APR of 2.5% How many will you have after…

A: An annuity is a type of financial contract intended to give someone a steady stream of income…

Q: Suppose you save $2,800 ayear for 43 years into an investment account that earns 8.5% return, how…

A: Yearly savings = $2800Period = 43 yearsInterest rate = 8.5%

Q: the rule of 72

A: Given information : Initial investment = $100 Interest rate = 7%

Q: A person who invests $1,000 each year finds one choice that is expected to pay 4 percent per year…

A: Future Value (FV) is the value of an asset at a future date, given a specified rate of return. It…

Q: You are 19 years old today. You want to have $381,507.06 in an investment acce when you are 60 years…

A: Future value of money include the growth of money and interest also. so future value become…

Q: Approximately (using the Rule of 72), how many years will it take to double a $3000 investment when…

A: The Rule fo 72 is a model which helps in knowing the number of years it will take to double the…

Q: Double your money-Rule of 72. Approximately how long will it take to double your money if you get an…

A: The Rule of 72: It is a simple formula for determining how long an investment will take to double in…

Q: You would like to have $19,928 in 12 years. If the rate is 8.45%, how much do you have to invest…

A: Future value required (FV) = $19928 Interest rate (r) = 8.45% Number of annual deposits (n) = 12

Q: About how many years would it take for your investment to grow sixfold if it were invested at an APR…

A: In the given question we require to calculate the the number of years that make the investment six…

Q: You have $68,513 you want to invest. You are offered an investment plan that will pay you 4.58…

A: Annual rate refers to the interest rate that is earned over the investment amount by the investors…

Q: (Solving for n with nonannual periods) About how many years would it take for your investment to…

A: We require to calculate the the number of years that make the investment twofold i.e. two times.…

Q: (Solving for n with nonannual periods) About how many years would it take for your investment to…

A: In the given question we require to calculate the the number of years that make the investment…

Types of Insurance Contract

Insurance is a contract wherein an individual or entity gets financial protection from the insurance company for any damages or losses incurred. The individual or entity is called the insured, whereas the insurance company is called the insurer. The insured and the insurer enter a legal contract for a fixed term called the insurance term, and the contract is called an insurance policy.