Vulture Sporting Goods reported the following data at March 31, 2010, with amounts adapted in thousands:
1 answer:
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Answer:
10 years and 10 months.
Explanation:
Provided information we have,
Amount invested = $2,500
Earning interest rate = 3.4% annually
Compounded semiannually
Thus, period to be considered = 2 in a year
Interest rate =
Thus, effective interest rate = 1.7%
Now, according to future value of compounded rate @ 1.7% at a period 65 factor = 2.9913
Thus value will be $2,500 2.9913 = 7,478.25
That is approximate triple in value.
Thus, total period in number of years = 65/6 months = 10.833 years.
0.833 12 months = 10 months
That exactly means 10 years and 10 months.