Keep the Highest $\frac{0}{3}$

Finding the interest rate and the number of years

The future value and present value equations also help in finding the interest rate and the number of years that correspond to present and future

value calculations.

If a security currently worth $$12,800$ will be worth $$16,124\mathrm{.}31$ three years in the future, what is the implied interest rate the investor will earn on the

security$-$assuming that no additional deposits or withdrawals are made?

$1\mathrm{.}26\%$

$7\mathrm{.}94\%$

$8\mathrm{.}00\%$

$6\mathrm{.}40\%$

If an investment of $$40,000$ is earning an interest rate of $12\mathrm{.}00\%,$ compounded annually, then it will take

for this investment to

reach a value of $$56,197\mathrm{.}12-$assuming that no additional deposits or withdrawals are made during this time.

Which of the following statements is true$-$assuming that no additional deposits or withdrawals are made?

It takes $10\mathrm{.}50$ years for $$500$ to double if invested at an annual rate of $5\%.$

It takes $14\mathrm{.}21$ years for $$500$ to double if invested at an annual rate of $5\%.$