Explanation:
i=interest rate
X=current rate
2X = double current rate
n = number of years
Calculate time it takes to double at 3%:
2X = X(1+i)^n
simplify by cancelling out X
(1+i)^n = 2
substitute i = 3%
(1.03)^n =2
take log
n*log(1.03) = log(2)
n = log(2)/log(1.03) = 0.6931/0.02956 = 23.45 years
Similarly, for growth rate of 7%,
n = log(2)/log(1.07) = 0.6931 / 0.06766 = 10.24 years
So the difference is 23.45-10.24 = 13.21 years (to the hundredth) sooner
Are there any answer choices or is it a blank?
<u>Solution and Explanation:</u>
1. the Yield to maturity
FV = 1,000
PMT = FV multiply with Coupon rate
, PMT = 1,000 multiply with 0.1 = 100
N = 5
, PV = -1,197.93
CPT I/Y
I/Y = 5.380166647
Therefore, the Yield to maturity = 5.380166647%
Where: FV – fair value, PV – Present value
2. Current yield = Coupon payment divided by Price
Current yield = 100 divided by 1,197.93
By solving we get,
Current yield = 0.08347733173
Therefore, the Current yield = 8.347733173%
Answer:
The descriptions that best characterize the young Dr. Jekyll include the following:
1. -He was famous.
2. -He was rich.
3. -He was in excellent shape.
Explanation:
He was an eccentric Dr who was researching on the possibility of discovering a drug that will help mankind. During his research, he noticed that, when ever he take a particular drug, it alters his personality and body which would bring out the darkest thoughts in him.
<em>The more he took the drug, the more him slips into darkness and destruction which always makes him sober after transforming back to his normal personality.</em>