Theo has just inherited $57,200 from a long lost uncle. He decides to invest it into an account earning 7.50% compounded semi-annually:

How long will it take for the investment to grow to $105,000?

 

2. When she was born, Karen's grandparents put $10,000 into a trust fund for her. Karen is now 20 years old and the fund has grown to $36,472. Calculate the annual compound rate of growth that the trust fund earned over the 20 years.

Express your answer (j₁) as a percent to 2 decimal places but don't include the % sign.

 

3. Calculate the annual effective rate equivalent to a nominal rate of 11.66% compounded semi-annually.

 

4. How long will it take to double your investment if you earn 6.59% compounded monthly?

 

5. Calculate the monthly compounded rate (j₁₂) equivalent to a semi-annually compounded rate of 10.59% (j₂).

6. How long will it take for an investment to grow from $1,500 to $3,000 if it earns 7.26% compounded quarterly?

Answer rating: 100% (QA)

Lets solve each problem stepbystep 1 How long will it take for the investment to grow to 105000 We can use the formula for compound interest to calculate the time required Future Value FV Present Valu... View the full answer