math

At approximately what rate would you have to invest a lump-sum amount today if you need the amount to triple in six years, assuming interest is compounded annually?

  1. 👍 0
  2. 👎 0
  3. 👁 86
asked by Casey
  1. A=PR^6 (calculate future value from present value P)
    R^6=A/P=3 (triple)
    R=3^(1/6) (sixth root of 3)

    1. 👍 0
    2. 👎 0
    posted by MathMate
  2. 12

    1. 👍 0
    2. 👎 0

Respond to this Question

First Name

Your Response

Similar Questions

  1. Finance

    Your trust fund will pay you $100.000 in six years when you turn 25. A shady institute has encourage you to sign over in exchange of cash today. Would you prefer a 8% or 10% discount rate to determine value of lump sum payment ?

    asked by Anthony on January 21, 2014
  2. Accounting

    you have just won the National Publisher's Sweepstakes. You have two options, you can receive ten, $500,000 semiannual payments starting today, or you can take your winnings in a lump-sum payment now based on 7% annual interest

    asked by Jessica on July 4, 2011
  3. Finance

    Find the lump sum deposited today that will yield the same total amount as payments of $10,000 at the end of each year for 15 years at a rate of 4% compounded annually.

    asked by Thomas on March 21, 2011
  4. MatHematics

    After a 20 year period Josh's lump sum investment matures to an amount of R313550. How much did he invest if his money earned interest at a rate of 13,65% p.a compounded half yearly for the first 10years ,8,4% p.a compounded

    asked by Nomuntle...Mphela on August 16, 2013
  5. Finance

    You currently have $7,500 to invest. You can invest the full amount now for a periodof 9 years at which time you want to have $15,000. Approximately what rate ofreturn is needed to accomplish this investment goal?

    asked by lay lay on February 7, 2012
  6. Consumer Math

    On retirement Victor was offered the option of receiving monthly payment of $1674.08 or a lump-sum payment of $150667 a) What are the respective incomes per annum of each option if the lump sum can be invested at 11.5% p.a. b) At

    asked by Anonymous on November 19, 2016
  7. Advanced Algebra

    Max has just won some money on a game show! He has the option to take a lump sum payment of $500,000 now or get paid an annuity of $4,900 at the beginning of each month for the next 10 years. Assuming the growth rate of the

    asked by Steve on April 18, 2018
  8. math

    The state lottery (which has a 6% lottery tax) offers to pay winnings in 25 annual payments or one lump sum, sometimes called a cash-out option. This week’s lottery has a jackpot of $30 million and a cash-out value of $18.2

    asked by sarah on March 3, 2018
  9. math urgent

    The state lottery (which has a 6% lottery tax) offers to pay winnings in 25 annual payments or one lump sum, sometimes called a cash-out option. This week’s lottery has a jackpot of $30 million and a cash-out value of $18.2

    asked by sarah on March 4, 2018
  10. Math

    Which would amount to more money on December 31 of this year: $500 invested on January 1st of this year at 10% annual interest compounded quarterly; or a lump sum payment of $580? (a) the $500 investment (b) both are the same (c)

    asked by Michael on November 3, 2011

More Similar Questions