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Compound interest would be required to match performance

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1. An investment of $1,000 in a stock is worth $1221 after two years a) What rate of compound interest would be required to match this performance? b) what would the doubling time be?

2. Each year, the Internal Revenue Service adjusts the value of an exemption based on inflation (and rounds to the nearest $50). In a recent year, if the exemption was worth $3,800 and inflation was 4.90 percent, what will be the amount of the exemption for the upcoming tax year? (Round your answer to the nearest $50.)

Reference no: EM131837386

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