Question: Problem 1. (15 Pts) How long does it take for an investment to double in value if it earns (a) 7 percent, (b) 9 percent,

Problem 1. (15 Pts) How long does it take for an

Problem 1. (15 Pts) How long does it take for an investment to double in value if it earns (a) 7 percent, (b) 9 percent, (c) 11 percent, (d) 12 percent, or (e) 13 percent annual compound interest? Solve above using method of 1) Interpolation (Using Tables) 2) Mathematically (Using log) 3) Goal Seek (Using Excel) (II) A S120,000 investment produces returns of $60,000, $40,000, $20,000, $40,000, and S60,000 at the end of year (EOY) 1 through 5, respectively. Based on a 12 percent annual compound interest rate, what are the present worth and future worth equivalents for the multiple cash flows shown (Use excel to show your work) (10 Pts) 60000 60000 40000 40000 20000 4 120000

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