ن فن d. b. C. write al vestment as a ne, in years. Determine the value of the investment to the nearest penny after 10 years. How long will it take for the investment to double in value? Answer to one decimal.

ن فن d. b. C. write al vestment as a ne, in years. Determine the value of the investment to the nearest penny after 10 years. How long will it take for the investment to double in value? Answer to one decimal.

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

Problem 1PS

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Question

7.
A $5000 investment earns 4% interest, compounded semi-annually.
a.
b.
C.
d.
Write an equation for the value of the investment as a function of time, in years.
Determine the value of the investment to the nearest penny after 10 years.
How long will it take for the investment to double in value? Answer to one decimal.
If it was compounded daily, determine how much quicker it would double in value.

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