What compound rate is necessary for the money to double

Assignment Help Financial Management

Reference no: EM131587195

There is a rule of thumb which can be used as an approximation called the Rule of 72 to find interest or period of time, given the other quantity.

a. If $1 is invested for 10 years, what compound rate is necessary for the money to double?

b. How long does it take for the money to double at 12%? 2. Continuous compounding of interest is found as i=er-1 Where r-nominal rate per year, decimal a. Suppose $1000 is invested into a continuously compounded 8% nominal interest account for 5 years. What is the future amount? b. What if this same problem was an 8%/yr CM problem? What is the future amount?

Reference no: EM131587195

Questions Cloud

Find a hamilton circuit on the graph of the soccer ball : At the Chemical Storage Unit, every day the receiving manager uses a list of deliveries scheduled for the day with the holding bay to which each delivery.

Explain the steps you took to address the issue : Discussion: Would You Make the Same Decision? Explain the steps you took to address the issue. What could you have done differently, and why?

Influenced by the ideas of immanuel kant : 1. How was Georg Hegel's philosophy influenced by the ideas of Immanuel Kant?

Prepare the journal entry to record interest capitalization : Compute the total interest due for 2016. Prepare the journal entry to record the interest capitalization

What compound rate is necessary for the money to double : If $1 is invested for 10 years, what compound rate is necessary for the money to double?

Kant categorical imperative : It states that you should treat others as you would like others to treat you. Is the Golden Rule the same as Kant's categorical imperative, or is it different?

What did you think was interesting : What is the Chapter 7 about? What did you think was interesting? What did you learn from the Chapter 7? Explain

Describe the necessary factors to be considered : Describe the necessary factors to be considered when planning for International workforce. Of those factor, which one would you consider to be highest priority?

History of philosophy during the middle ages : Christianity determined the history of philosophy during the Middle Ages. How might philosophy have been different without the influence of the Catholic church?

User Account

All Pages