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3 years ago

How many years would it take for a dollar to triple in value if it earns a 6 percent rate of return

Business

1 answer:

ZanzabumX [31]3 years ago

6 0

Answer:

about 19 years

Explanation:

The formula for determining the total amount at the end of an investment, with interest compounded annually is,

$P * (1+r)^{n} = F$

where P is the amount invested,

r is the rate of return

n is the number of years

and F is the total amount at the end of the investment.

Therefore, for $1 invested today to triple ($3) at 6% annual rate,

$1 * (1+0.06)^{n} = 3$

= $(1+0.06)^{n} = 3$

By interpolation, the value of n that satisfies the equation is 18.9.

Therefore, the investment will triple in 18.9 years.

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3 years ago

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3 years ago

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Answer:

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3 years ago

If a firm has a cost of equity of 15 percent, and the firm is 100 percent equity financed. The firm is contemplating a $150 mill

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Answer:

c. $166.67 million

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