171k views
5 votes
1) How much was the initial investment in dollars?

2) What is the account's value 6 years after initial investment?
3) How much interest has been earned after 8 years?
4) How many years will it take this account to triple? (I=800)​

1) How much was the initial investment in dollars? 2) What is the account's value-example-1
User Mogoman
by
8.9k points

1 Answer

2 votes

1) The initial investment in dollars was E. $400.

2) The account's value 6 years after the initial investment is I. $592.

3) After 8 years, the total interest that has been earned is B. $256.

4) Given the interest rate as 8%, the account will triple in 14.275 years.

We can use an online finance calculator to compute the period of investment required for the account to triple.

I/Y (Interest per year) = 8%

PV (Present Value) = $400

PMT (Periodic Payment) = $0

FV (Future Value) = $1,200 ($400 x 3)

Results:

N (# of periods) = 14.275 years

Total Interest = $800.00

Thus, in 14.275 years, the account will triple from $400 to $1,200.

User Babybear
by
8.5k points

No related questions found

Welcome to QAmmunity.org, where you can ask questions and receive answers from other members of our community.

9.4m questions

12.2m answers

Categories