Find the interest rate needed for an investment of $9,000 to grow to $13,000 in

Question

Find the interest rate needed for an investment of $9,000 to grow to $13,000 in 4 years if interest is compounded continuously. (Round your answer to the nearest hundredth of a percentage point.)

How long will it take for an investment of $9,000 to double if the investment earns interest at the rate of 6%/year compounded continuously?

Bernie invested a sum of money 7 yr ago in a savings account, which has since paid interest at the rate of 3%/year, compounded quarterly. His investment is now worth $29,585.08. How much did he originally invest?

Online retail sales stood at $18 billion for 2000. For the next 2 yr, they grew by 33.2% and 27.8% per year, respectively. For the next 6 yr, online retail sales are projected to grow at 30.5%, 19.9%, 24.3%, 14.0%, 15.6%, and 10.9% per year, respectively. What are the projected online sales for 2008?

Zoe purchased a house in 1999 for $101,000. In 2004 she sold the house and made a net profit of $25,000. Find the effective annual rate of return on her investment over the 5-yr period. (Round your answer to the nearest hundredth of a percentage point.)

Explanation / Answer

a)13000=9000e^(4r)

r=9.19%

b)2=e^0.06*t

t=11.55yrs

c)29585.08/(1+.03/4)^28

=12930.95

d)18*(1+.332)*(1+.278)*(1+.305)*(1+.199)*(1+.243)*(1+.14)*(1+.156)=$78.536 billion

e)(101000+25000)=(101000)(1+r)^5

r=4.52%

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