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Unknown Periods and Unknown Interest Rate - 16 Sep, 2012

 (Unknown Periods and Unknown Interest Rate)

Consider the following independent situations. (Hint: Use tables in text.)

(a) Mark Yoders wishes to become a millionaire. His money market fund has a balance of $148,644 and has a guaranteed interest rate of 10%. How many years must Mark leave that balance in the fund in order to get his desired $1,000,000?

             

(b) Assume that Elvira Lehman desires to accumulate $1 million in 15 years using her money market fund balance of $239,392. At what interest rate must Elvira's investment compound annually?



Category : Financial Management

Search Keywords :
Unknown , Periods , Interest , Rates , Mark , Yoders , Elvira , Lehman 


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Answer  - 16 Sep, 2012
 (a) We are given the PV, FV and the rate and we need to find the peri....


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