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What rate of interest compounded annually is required to triple an investment in 30 years?
3.73% would do it almost exactly:
Where p is the original investment and i is the rate of interest:
3p = p((1 + i/100) to the power of 30)
dividing by p gives ((1 + i/100) to the power 30) = 3
using logarithms (log 3)/30 = 1 + i/100
antilog (0.47712/30) = 1 + i/100
antilog 0.0159 = 1 + i/100
1.037299 = 1 + i/100
0.037299 = i/100
i = 3.7299
Later: I tested this on Excel with capital of 5000 and interest rate of 3.73% and after 30 years investment was worth 15000.35!
What else can I help you with?
Determine the per annum interest rate r required for an investment with continuous compound interest to yield an effective rate of 4.25 percent Express your answer as a percent?
We still need to know how often the interest is compounded ... Weekly ? Daily ? Hourly ? What does "continuous" mean ?
Bill put 750 into a CD that pays 8 interest compounded quarterly. According to the rule of 72 approximately how long will it take for his money to double?
The Rule of 72 states that you can estimate the number of years required to double an investment by dividing 72 by the annual interest rate. In this case, with an 8% interest rate, you would calculate 72 ÷ 8 = 9 years. Therefore, it will take approximately 9 years for Bill's $750 to double in a CD with 8% interest compounded quarterly.
Six thousand dollars is deposited into a fund at an annual rate of 13 percent find the time required for the investment to double if the interest is compounded continuously?
the equation for compound interest is Pe^(rt) the principal you want in the end is twice that of the original 12,000 plugging in and solving you get 12,000=6000e^(.13t) t = 5.33 years
How do you use rule of 72?
The Rule of 72 is a simple formula used to estimate the number of years required to double an investment based on a fixed annual rate of return. To use it, divide 72 by the expected annual interest rate (expressed as a whole number). For example, if your investment earns 6% annually, it would take approximately 72 ÷ 6 = 12 years to double your money. This rule provides a quick and easy way to gauge the impact of compound interest on investments.
What rate of interest compounded continuously is required to triple an investment in 8 years?
Solve the following equation: (1 + x/100)8 = 3. That is, your money increases by a certain factor each year; the factor is the capital plus the percentage rate (divided by 100), and if you multiply the factor by itself 8 times, you get a factor of 3. To start solving this, take the 8th. root left and right.
What rate of interest compounded annually is required to triple an investment in 3 years?
Approx 44.225 % The exact value is 100*[3^(1/3) - 1] %
What interest rate is required for an investment with continuously compounded interest to double in 8 years?
It is approx 8.66%
What rate of interest compounded annually is required to double an investment in 21 years?
(2)1/21 = 1.03356 (rounded)That's an annual interest of 3.356 percent.Let's try it:(1.03356)21 = 2.00009 on my calculator, which is pretty close.
Suppose Betty takes out a loan for 300 at an annually compounded interest rate of 6 percent to be repaid after 5 years How much will be required to pay off the loan?
390.45
What rate of interest compounded annually is required to triple an investment in 10 years?
(1+x)10 = 310 log(1+x) = log(3)log(1+x) = 0.1 log(3)(1+x) = 10[0.1 log(3)] = 1.116123x = .116123 = 11.61 percent
Determine the per annum interest rate r required for an investment with continuous compound interest to yield an effective rate of 4.25 percent Express your answer as a percent?
We still need to know how often the interest is compounded ... Weekly ? Daily ? Hourly ? What does "continuous" mean ?
What is a good jumbo CD rate to make the investment worthwhile?
A good jumbo CD rate would be over 5% and one must be careful to find out how often the interest will be compounded. Also important is the minimum investment amount that would be required.
What rate of interest compounded annually is required to double an investment in 16 years?
Future Value = (Present Value)*(1 + i)^n {i is interest rate per compounding period, and n is the number of compounding periods} Memorize this.So if you want to double, then (Future Value)/(Present Value) = 2, and n = 16.2 = (1 + i)^16 --> 2^(1/16) = 1 + i --> i = 2^(1/16) - 1 = 0.044274 = 4.4274 %
Bill put 750 into a CD that pays 8 interest compounded quarterly. According to the rule of 72 approximately how long will it take for his money to double?
The Rule of 72 states that you can estimate the number of years required to double an investment by dividing 72 by the annual interest rate. In this case, with an 8% interest rate, you would calculate 72 ÷ 8 = 9 years. Therefore, it will take approximately 9 years for Bill's $750 to double in a CD with 8% interest compounded quarterly.
What annual rate of interest is required to triple an investment in 12 years?
If it is compounded annually, then: F = P*(1 + i)^t {F is final value, P is present value, and i is interest rate, t is time}.So if it triples, F/P = 3, and 12 years: t = 12, so we have 3 = (1 + i)^12, solve for i using logarithms (any base log will do, but I'll use base 10):log(3) = log((1+i)^12) = 12*log(1+i)(log(3))/12 = log(1+i).Now take 10 raised to both sides: 10^((log(3))/12) = 10^log(1+i) = 1 + ii = 10^((log(3))/12) - 1 = 0.095873So a rate of 9.5873 % (compounded annually) will triple the investment in 12 years.
Six thousand dollars is deposited into a fund at an annual rate of 13 percent find the time required for the investment to double if the interest is compounded continuously?
the equation for compound interest is Pe^(rt) the principal you want in the end is twice that of the original 12,000 plugging in and solving you get 12,000=6000e^(.13t) t = 5.33 years
Relationship between required rate of return and coupon rate on the value of a bond?
required rate of return is the 'interest' that investors expect from an investment project. coupon rate is the interest that investors receive periodically as a reward from investing in a bond
