Question: To the closest year, how long will it take $200 to double if it is deposited and earns the following rates? [Notes: (1) See the

To the closest year, how long will it take $200 to double if it is deposited and earns the following rates? [Notes: (1) See the Hint for Problem 4-9. (2) This problem cannot be solved exactly with some financial calculators. For example, if you enter PV = –200, PMT = 0, FV = 400, and I = 7 in an HP-12C and then press the N key, you will get 11 years for part a. The correct answer is 10.2448 years, which rounds to 10, but the calculator rounds up. However, the HP-10B gives the exact answer.]
a. 7%
b. 10%
c. 18%
d. 100%

Step by Step Solution

★★★★★

3.59 Rating (174 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

a With a financial calculator enter IYR 7 PV 200 PMT 0 and FV 400 Then press the N key to f... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Document Format (1 attachment)

49-B-C-F-I-S (15).docx

120 KBs Word File

Students Have Also Explored These Related Corporate Finance Questions!

To the nearest month, how long will it take an investment to increase in value by 200% if it earns 7.5% compounded semiannually?

To the nearest day, how long will it take a $20,000 investment to grow to $22,000 (including accrued interest) if it earns 7% compounded quarterly? Assume that a quarter year has 91 days.

How long will it take a payment of $500 per quarter to amortize a loan of $8,000 at 16% compounded quarterly? Approximate your answer in terms of years and months. How much less time will it take if...

(46) What is the future value of a 7%, 5-year ordinary annuity that pays $300 each year? If this were an annuity due, what would its future value be? (47) An investment will pay $100 at the end of...

(4-10) Present and Future Values of Single Cash Flows for Different Interest Rates Use both the TVM equations and a financial calculator to find the following values. See the Hint for Problem 4-9. a....

Please answer (2-10) Time Value of Money questions (2-8) You want to buy a car, and a local bank will lend you $20,000. The loan would be Avnvily Poymons ond fully amortized over 5 years ( 60...

I have the answers for these but don t understand how to reach these answers I ll provide the answers and would appreciate detailed and accurate steps and work for these problems below: Present and...

1 ) Time for a Lump Sum to Double To the closest year, how long will it take $ 2 0 0 to double if it is deposited and earns the following rates? [ Notes: ( 1 ) If you are using a financial...

(411) Time for a Lump Sum to Double To the closest year, how long will it take $200 to double if it is deposited and earns the following rates? [Notes: (1) See the Hint for Problem 4-9. (2) This...

(4-11) Time for a Lump Sum to Double due in 10 years at a 12% discount rate To the closest year, how long will it take $200 to double if it is deposited and earns the following rates? (Notes: (1) See...

In Figure R 1 = 7.00?, R 2 = 12.0?, R 3? = 4.00?, and the ideal battery's emf is ? = 24.0 V. For what value of R 4 will the rate at which the battery transfers energy to the resistors equal (a) 60.0...

Suncoast Boats Inc. estimates that because of the seasonal nature of its business, it will require an additional $2 million of cash for the month of July. Suncoast Boats has the following four...

Assume that your parents wanted to have $ 1 6 0 , 0 0 0 saved for college by your 1 8 th birthday and they started saving on yoir 1 8 th birthday and they started saving on your first birthday

On October 3, 2017, Gilead Sciences, Inc. (Gilead) acquired 100% of the outstanding common stock of Kite Pharma, Inc. (Kite). According to Gileads December 31, 2017 Securities and Exchange Com-...

If the internal pH of a muscle cell is 6.8, what is the [HPO4^-2]/[H2PO4^-1] ratio in the cell? (pKa of H2PO4^-1 is 7.2, pKa of HPO4^2- is 12.4).

A. From what group must the terminal atoms come in an ABx molecule where the central atom is from group 6A, for the electron-domain geometry and the molecular geometry both to be trigonal planar?...

Prelaboratory Assignment I. Give the step-by-step procedures that you will use for the following tasks: a. Measuring the density of the metals b. Measuring the heat of fusion of ice

The writing assignment involves a critical analysis of a recent article (3 to 6) pages long from a professional accounting journal (e.g. The Journal of Accountancy, Accounting Horizons, CPA Journal,...

(a) Calculate the energy released in the decay of 238 U. (b) What fraction of the mass of a single 238 U is destroyed in the decay? The mass of 234 Th is 234.043593 u. (c) Although the fractional...

Give two reasons stockholders might be indifferent between owning the stock of a firm with volatile cash flows and that of a firm with stable cash flows.

Define each of the following terms: a. Multinational corporation b. Exchange rate; fixed exchange rate system; floating exchange rates c. Trade deficit; devaluation; revaluation d. Exchange rate...

What are three types of project risk? How is each type of risk used? MINI CASE During the last few years, Harry Davis Industries has been too constrained by the high cost of capital to make many...

My data was the two quantitative variables found by gapminder.org: smoking men as my independent (x) variable and lung cancer death rate per 100K as my dependent (y) variable randomly chosen from 35...

Worcester Tool Company is a large, U.S.-based, multinational corporation with subsidiaries in eight different countries. The parent of Worcester provided an initial cash infusion to establish each...

35 draws are made at random with replacement from the box containing the 5 tickets: El a] The smallest the sum of the 35 draws could possibly be is I: and the largest is :l Tries Df3 b) What is the...