Determine the time would take to double the investment

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Problem 1: Suppose the US Federal Reserve offers a bond for $ 635.20 at 8 years of maturity. You will not have to issue payments until the maturity date, at which point you will receive $ 950. Calculate the interest rate if you decide to buy it. Determine the interest rate if you can buy it at a price of $ 555.

Problem 2: Suppose the company Liver Corporation earned $ 1.57 per share in 2010 and after 8 years, in 2018, the company earned $ 3.10. Determine the growth rate of earnings per share (EPS) over the 8 years.

Problem 3: If an investor intends to double $ 25,000 by investing in a bank that pays 7% interest per year, determine the time it would take to double the investment.

Reference no: EM132965982

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