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Calculate the unknown interest rate

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a) Linkon invested $1000 in the business. After a period of 10 years the money was $2000. Calculate the unknown interest rate.

b) Hayward, the Director of Zimbabwe Daily Board would like to retire in 50 years as a millionaire. If he has $10000 today, what rate of return does he need to achieve his goal?

c) You have been saving to buy a house. The total cost will be $10 million. You currently have about $2.3 million. If you earn 5% on your money.

(i) how long will you have to wait until you are able to buy the house?

(ii) At 16% how long will you have to wait?

d) You have been offered an investment that will double your money in 10 years. What rate of return are you being offered?

e) State at least six differences between shares and bonds

Reference no: EM131904970

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