To calculate how many years (n) an investment (P) must be kept in anaccount that earns interest at i%, in order to triple in amount, which of thefollowing expressions should be used?(a) n = -P + F(P/F, i%, n)(b) n = [log (F/P)]/[log (1+ i%)](c) n = [ In(– P +F)]/[In i%](d) n = -F(1 + i%)P

A theory that helps to compute the present or future value of the cash flows is term as the TVM…

Answered: To calculate how many years (n) an…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Over one year, future value or cash flow (CF), present value (PV), and the rate of interest (i) are related as follows Select one: a. PV = CF (1 + i). b. CF = PV/(1+i). c. CF + PV = 1/(1+i). d. CF/PV = (1+i).
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To calculate how many years (n) an investment (P) must be kept in an account that earns interest at i%, in order to triple in amount, which of the following expressions should be used? (a) n = -P + F(P/F, i%, n) (b) n = [log (F/P)]/[log (1+ i%)] (c) n = [ In(– P +F)]/[In i%] (d) n = -F(1 + i%)P