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
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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.
Transcribed Image Text: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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