Question: Part 1: How long does it take for an investment to double in value if it earns (a) 4%, (b) 6%, (c) 9%, (d)

Part 1: How long does it take for an investment to double in value if it earns (a) 4%, (b) 6%, (c) 9%, (d) 12%, (e) 15% annual compound interest? Solve above using method of 1) Interpolation (Using Tables) 2) Mathematically (Using log) 3) Goal Seek (Using Excel) 4) Using Rule of 72 Part 2: Consider the following cash flow diagram if i = (5+AAA)%. 0 0 400 350 150 200 250 300 a) Find the uniform equivalence using the appropriate gradient and uniform series from tables. b) Find the uniform equivalence using Excel. c) Find the gradient equivalence using Excel. Part 3: Vin Diesel has a bank account in which he deposits $400 at the end of every month. The bank account earns (AAA +4) % per year compounded quarterly. How long will it take him to have a total of $48,000 in that bank account so that he can buy a new sports car for a new Fast & Furious movie

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Part 1 1 Interpolation Using Tables For 4 and 6 Approximately 1718 years For 6 and 9 Approximately 1... View full answer

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