Future value You have S500 to invest. If you can earn 12% interest about how lon

Question

Future value You have S500 to invest. If you can earn 12% interest about how long doest take for your S500 mest ment to grow to S1,000? Suppose the rterest rate s ust har tat at0%. At half the nerest rate, does it take exacty twice as long to double your money? Why or why not? How long does it take? If the annual interest rate is 12%, the runter of years it takes to double your money is L] years (Round to two deonal places.) lfthe annual interest rate isjust half at 6%, the number of years takes to double your money is ? years (Round to two decimal places ) At half the interest rate, does it take exactly twice as long to double your money? (Select the best answer below.) O A. No, it takes sightly less than twice as long to double your money because the money accumulated faster over longer time penods O B. No, it takes more than twice as long to double your money because the money must be accumulated even longer at hal the interest rate O c. Yes, it takes eachy hice as long to double your money because he number of time periods is ineaty related to the nterest rate O D. Yes, it takes exactly twice as long to double your money regardless of the annual interest rate

Explanation / Answer

a) Present Value $500.00 Future Value $1,000.00 Rate 12.00% Payment $0.00 Nper = nper(12%,0,-500,1000) 6.12 Years b) Present Value $500.00 Future Value $1,000.00 Rate 6.00% Payment $0.00 Nper = nper(6%,0,-500,1000) 11.90 Years c) Option A Its take slightly less than the twice as long to double the money.

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