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Ivenika [448]
2 years ago
11

You have $100 you have $100 to invest. If you can earn 12% interest, about how long does it take for your $100 investment to gro

w to $200? Suppose the interest rate is just half that, at 6%. At half the interest rate, does it take twice as long to double your money? Why or why not? How long does it take
Business
1 answer:
Ann [662]2 years ago
6 0

Answer:

8.33333 years ;

Yes, the time doubles.

Explanation:

Investment amount = principal = $100

Interest rate, r = 12%

Time taken for investment to grow to $200

Using the simple interest formula :

A = P(1 + rt) ; t = time taken ; A = final amount = $200

200 = 100(1 + 0.12t)

200 = 100 + 12t

200 - 100 = 12t

100 = 12t

t = 100 / 12

t = 8.333 years

Time taken, if rate, r = 6%

200 = 100(1 + 0.06t)

200 = 100 + 6t

200 - 100 = 6t

100 = 6t

t = 100 / 6

t = 16.6666 years

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3 years ago
Alternative A would involve substantial fixed but relatively low variable costs: fixed costs would be $250,000 per year, and var
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Answer:

From zero to 33 boats option B would be best

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Assuming the first alternative (A)is 250,000 fixed and 500 per boat

second (B) 2,500 cost per boat

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500 + \frac{250,000}{Q} = 2,500

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6 0
2 years ago
Assume that on July 1, 2018, Togo's Sandwiches issues a $2.97 million, one-year note. Interest is payable at maturity.
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Answer:

7% interest at Cec-31 for 6 months:

Dr Interest  expense(7%*$2,970,000*6/12) $ 103,950

Cr Interest payable                                                          $103,950

9% interest at Sept 30 for 3 months:

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Cr Interest payable                                                          $66,825

6% interest at Oct 31 for 4 months:

Dr Interest  expense(6%*$2,970,000*4/12) $ 59,400

Cr Interest payable                                                          $59,400

8% interest at Jan 31 for 7 months:

Dr Interest  expense(8%*$2,970,000*7/12) $138,600  

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Explanation:

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