Growing Interest Rate Specified
Not what you're looking for?
How long will it take for $400 to grow to $1000 at the interest rates specified?
a. 4%
b. 8%
c. 16%
Please show all work.
Purchase this Solution
Solution Summary
The solution gives the formulas, the explanations and a proof for the problems.
Solution Preview
One period gives the principal multiplied by the factor (1 + x%/100) for brevity x%/100 =x where x is the correspondent fractional percent.
In the next period the new principle is P(1 +x) and at the end of the period we obtain this multiplied again by (1+x) So for n periods the new principle returned is P(1+x)^n
So now we want $400 to return as $1000 in n ...
Purchase this Solution
Free BrainMass Quizzes
Cost Concepts: Analyzing Costs in Managerial Accounting
This quiz gives students the opportunity to assess their knowledge of cost concepts used in managerial accounting such as opportunity costs, marginal costs, relevant costs and the benefits and relationships that derive from them.
Business Ethics Awareness Strategy
This quiz is designed to assess your current ability for determining the characteristics of ethical behavior. It is essential that leaders, managers, and employees are able to distinguish between positive and negative ethical behavior. The quicker you assess a person's ethical tendency, the awareness empowers you to develop a strategy on how to interact with them.
SWOT
This quiz will test your understanding of the SWOT analysis, including terms, concepts, uses, advantages, and process.
Transformational Leadership
This quiz covers the topic of transformational leadership. Specifically, this quiz covers the theories proposed by James MacGregor Burns and Bernard Bass. Students familiar with transformational leadership should easily be able to answer the questions detailed below.
Writing Business Plans
This quiz will test your understanding of how to write good business plans, the usual components of a good plan, purposes, terms, and writing style tips.