The future value and present value equations also help in finding the interest r

Question

The future value and present value equations also help in finding the interest rate and the number of years that correspond to present and future value calculations. If a security currently worth $9,200 will be worth $13,517.82 five years in the future, what is the implied interest rate the investor will earn on the security-assuming that no additional deposits or withdrawals are made? 0 6.81% 0.29% 0 1.47% 8.00% If an investment of $45,000 is earning an interest rate of 4.00%, compounded annually, then it will take for this investment to reach a value of $60,389.66-assuming that no additional deposits or withdrawals are made during this time. Which of the following statements is true-assuming that no additional deposits or withdrawals are made? It takes 10.50 years for $500 to double if invested at an annual rate of 5%. It takes 14.21 years for $500 to double if invested at an annual rate of 5%.

Explanation / Answer

As per chegg guidelines when ther are more than one question then we hae to aswer first question. Calculation of implied interest rate: Future value= Present value*(1+rate)^time 13517.82= 9200*(1+rate)^5 (1+rate)^5= 1.469328 (1+rate)= (1.469328)^1/5 1+rate= 1.08 rate= 0.08 So correct answer is 8%

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