Financial Management: Theory & Practice
16th Edition
ISBN: 9781337909730
Author: Brigham
Publisher: Cengage
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Question
Chapter 4, Problem 4P
Summary Introduction
To find: The time that is taken to double the money.
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If you deposit money today in an account that pays 5% annual interest, how long will
it take to triple your money?
If you deposit money today in an account that pays 4%annually interest. How long will it take to double your money?
If you deposit money today in an account that pays 10.7 percent annual interest, how long will it take to double your money?
a.
6.82 years
b.
9.35 years
c.
10.70 years
d.
2.73 years
e.
The answer cannot be calculated without knowing how much money is initially deposited.
Chapter 4 Solutions
Financial Management: Theory & Practice
Ch. 4 - Prob. 2QCh. 4 - An annuity is defined as a series of payments of a...Ch. 4 - If a firm’s earnings per share grew from $1 to $2...Ch. 4 - Prob. 5QCh. 4 - If you deposit 10,000 in a bank account that pays...Ch. 4 - What is the present value of a security that will...Ch. 4 - Your parents will retire in 18 years. They...Ch. 4 - Prob. 4PCh. 4 - You have $42,180.53 in a brokerage account, and...Ch. 4 - What is the future value of a 7%, 5-year ordinary...
Ch. 4 - An investment will pay 100 at the end of each of...Ch. 4 - You want to buy a car, and a local bank will lend...Ch. 4 - Find the following values, using the equations,...Ch. 4 - Use both the TVM equations and a financial...Ch. 4 - Find the future value of the following annuities....Ch. 4 - Prob. 13PCh. 4 - Prob. 14PCh. 4 - Find the interest rate (or rates of return) in...Ch. 4 - Prob. 16PCh. 4 - Find the present value of 500 due in the future...Ch. 4 - Prob. 18PCh. 4 - Universal Bank pays 7% interest, compounded...Ch. 4 - Sales for Hanebury Corporation’s just-ended year...Ch. 4 - Washington-Pacific (W-P) invested $4 million to...Ch. 4 - A mortgage company offers to lend you 85,000; the...Ch. 4 - To complete your last year in business school and...Ch. 4 - Prob. 25PCh. 4 - You need to accumulate 10,000. To do so, you plan...Ch. 4 - Prob. 27PCh. 4 - Assume that you inherited some money. A friend of...Ch. 4 - Assume that your aunt sold her house on December...Ch. 4 - Your company is planning to borrow $1 million on a...Ch. 4 - Prob. 31PCh. 4 - Prob. 32PCh. 4 - You want to accumulate $1 million by your...Ch. 4 - Prob. 1MCCh. 4 - Prob. 2MCCh. 4 - We sometimes need to find out how long it will...Ch. 4 - If you want an investment to double in 3 years,...Ch. 4 - Whats the difference between an ordinary annuity...Ch. 4 - Prob. 6MCCh. 4 - Prob. 7MCCh. 4 - Define the stated (quoted) or nominal rate INOM as...Ch. 4 - Will the effective annual rate ever be equal to...Ch. 4 - (1) Construct an amortization schedule for a...Ch. 4 - Prob. 11MCCh. 4 - (1) What is the value at the end of Year 3 of the...Ch. 4 - Suppose someone offered to sell you a note calling...
Knowledge Booster
Similar questions
- Use the tables in Appendix B to answer the following questions. A. If you would like to accumulate $2,500 over the next 4 years when the interest rate is 15%, how much do you need to deposit in the account? B. If you place $6,200 in a savings account, how much will you have at the end of 7 years with a 12% interest rate? C. You invest $8,000 per year for 10 years at 12% interest, how much will you have at the end of 10 years? D. You win the lottery and can either receive $750,000 as a lump sum or $50,000 per year for 20 years. Assuming you can earn 8% interest, which do you recommend and why?arrow_forwardSuppose you currently have $4,800 in your savings account, and your bank pays interest at a rate of 0.47% per month. If you make no further deposits or withdrawals, how much will you have in the account in 6 years? In 6 years' time, you will have $________ in the account.arrow_forwardIf you deposit $50,000 in an account that pays 4% annual interest, how long will it take to double your money?arrow_forward
- Can you solve this problem? If you open a savings account that earns 7.5% simple interest per year, what is the minimum number of years you must wait to double your balance? Suppose you open another account that earns 7% interest compounded yearly. How many years will it take now to double your balance.arrow_forwardSuppose your savings account pays 6% interest compounded monthly. If you deposit $18,000 forfour years, how much will you have?arrow_forwardSuppose you need to have $57,942.00 in an account 25.00 years from today and that the account pays 11.00%. How much do you have to deposit into the account 5.00 years from today? Suppose you deposit $1,101.00 into an account 7.00 years from today. Exactly 15.00 years from today the account is worth $1,466.00. What was the account's interest rate? Suppose you deposit $1,093.00 into an account 7.00 years from today that earns 12.00%. It will be worth $1,613.00 _____ years from today. Assume the real rate of interest is 2.00% and the inflation rate is 4.00%. What is the value today of receiving 10,528.00 in 15.00 years?arrow_forward
- You deposit $5,000 in a savings account that earns 6% simple interest per year.How many years will it take to double your balance? If, instead, you deposit the$5,000 in another savings account that cams 5% interest compounded yearly,how many years will it take to double your balance?arrow_forwardIf you deposit $5000 into an account, how many years will it take for the account to be worth $9350 using 8.25% simple interest rate?arrow_forwardTIME FOR A LUMP SUM TO DOUBLE If you deposit money today in an account that pays4% annual interest, how long will it take to double your money?arrow_forward
- If you open a savings account that earns 6.5%simple interest per year, what is the minimum number of years you must wait to triple your balance?Suppose you open another account that earns 6%interest compounded yearly. How many years will ittake now to triple your balance?arrow_forwardAssume that you just deposited $1000 into a savings account that earns an interest rate of3% per year. How much will you be able to withdraw each year if you make your first annual withdrawal one year from today and your final withdrawal six years from today?arrow_forwardHow much would be in your savings account in 7 years after depositing $100 today if the bank pays 5 percent interest per year?arrow_forward
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