Question: If A 0 dollars are invested in a mutual fund that has an annual yield of r (in %), the value of A after n

If A0 dollars are invested in a mutual fund that has an annual yield of r (in %), the value of A after n years is A = A0(1 + r)n .

(a) Solve for n. 

(b) How many years does it take A to double if r = 4.00%?

Step by Step Solution

★★★★★

3.30 Rating (153 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock

a To solve for n we can isolate it on one side of t... View full answer

blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Basic Technical Mathematics Questions!

Q:

A retired woman has $120,000 to invest. She has chosen one relatively safe investment fund that has an annual yield of 9% and another, riskier fund that has a 13% annual yield. How much should she...

Q:

1. Assuming the deathclock.com projection is accurate, Cory is concerned about getting back as much as possible of his Social Security taxes. At what age can he retire and receive full Social...

Q:

A professor has two daughters that he hopes will one day go to college. Currently, in-state students at the local University pay about $21,008.00 per year (all expenses included). Tuition will...

Q:

Tess used the proceeds from the sale or her real property and personal property to purchase various investments on January 1st, 2020, and finance her retirement. On the assumption that Tess's...

Q:

Tess used the proceeds from the sale or her real property and personal property to purchase various investments on January 1st, 2020, and finance her retirement. On the assumption that Tess's...

Q:

Section A 31. Which of this organization could be describe as having a legal entity, separate from its owners and managers? A. K. Ofori Ventures B. KHN Accountants and Associates C. Okudzeto and...

Q:

31. Which of this organization could be describe as having a legal entity, separate from its owners and managers? A. K. Ofori Ventures B. KHN Accountants and Associates C. Okudzeto and Partners D....

Q:

You are considering investing $100 for one year in a mutual fund with an expected return of 10% per year. It charges a 1% front-end fee and a 1% back-end load. The expense ratio is 0.5% per year and...

Q:

You are considering investing $ 1 0 0 for one year in a mutual fund with an expected return of 1 0 % per year. It charges a 1 % front - end fee and a 1 % back - end load. The expense ratio is 0 . 5 %...

Q:

Three growth stock mutual funds had returns over the past 10 years of 7.9%, 9.3%, and 9.3%, respectively, reported Kiplinger magazine. If you purchased the mutual fund with an average annual 9.3%...

Q:

Create a weather report just like in the picture with all the details using HTML, CSS, and PHP code. It should show all the weather report of America and foreign countries when zip code is provided...

Q:

Determine the noise equivalent bandwidth for a filter with impulse response h (t) = bexp( at) u (t)

Q:

Which of the following computer language is used for artificial intelligence? FORTRAN PROLOG C COBOL None of the above

Q:

(c) Construct an analysis of variance table and test the hypothesis that color has no effect on inflation time.

Q:

The surface area S (in square meters) of a hot-air balloon is given by S(r) = 4r 2 where r is the radius of the balloon (in meters). If the radius r is increasing with time t (in seconds) according...

Q:

In problem, use the functions f and g to find: (a) f ° g (b) g ° f (c) The domain of f ° g and of g °f (d) The conditions for which f ° g = g ° f f(x) 8() + d' + b

Q:

In problem, the graph of a logarithmic function is given. Match each graph to one of the following functions: (a) y = log 3 x (b) y = log 3 (-x) (c) y = -log 3 x (d) y = -log 3 (-x) (e) y = log 3 x 1...

Q:

When do the payments on a Stafford Loan begin? options are below When your school receives the money from the government When your loan balance gets over $5,000 You can choose when your payments...

Q:

During a normal economy, the common stock of D&F Oil is expected to return 13.2 percent. During a recession, the expected return is 6.7 percent and during a boom, the expected return is 24.5 percent....

Q:

Mooney Equipment is putting together its cash budget for the following year and has forecasted expected cash collections over the next five quarters ( one year plus the first quarter of next year ) ....