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 $$5,600$ will be worth $$7,369\mathrm{.}22$ seven 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?

$7\mathrm{.}60\%$

$1\mathrm{.}32\%$

$4\mathrm{.}00\%$

$0\mathrm{.}19\%$

If an investment of $$40,000$ is earning an interest rate of $12\mathrm{.}00\%,$ compounded annually, then it will take for this investment to reach a value of $$78,952\mathrm{.}91$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 $5\%.$