FFN20303: How much would you have had to invest 21 years ago (t) in an account paying 6%(r) compounded: Money And Capital Market Assignment, MSU, Malaysia
| University | Management & Science University (MSU) |
| Subject | FFN20303 Money and Capital Market Assignment |
- How much would you have had to invest 21 years ago (t) in an account paying 6%(r) compounded annually to cover the cost of a $15,000 (FV) engagement ring for your fiancé?
- Approximately how many years must one wait for an initial investment of $10,000 to triple in value if the investment earns 9% compounded annually?
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- During one year on a $250 deposit paying continuously compounded interest at an APR of 8%, how much interest can be accumulated?
Interest = principal ´ rate ´ term (n)
- If your trust fund promises to pay you $25,000 on your 24th birthday (6years from today) and earns 9% compounded annually, then what is the trust fund’s present value?
- If a $10,000 investment will return $25,000 to you in five years, then to the nearest percent what annual interest rate is being offered?
FV = PV (1 + r)t
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