(a) How many years will it take for $7500 to accumulate to $9517.39 at 3% compounded semi-annually?(b) Over what period of time will money triple at 9% compounded quarterly?(c) How many years will it take for a loan of $10,000 to amount to $13,684 at 10.5% compounded monthly?(a) It will take 8 years.(Round the final answer to two decimal places as needed. Round all intermediate values to six decimal places as needed.)(b) The money will triple inquarters.(Round the final answer to two decimal places as needed. Round all intermediate values to six decimal places as needed.)

The money that you have today is valuable more than the same amount in the future due to the time…

(a) How many years will it take for $7500 to accumulate to $9517.39 at 3% compounded semi-annually? (b) Over what period of time will money triple at 9% compounded quarterly? (c) How many years will it take for a loan of $10,000 to amount to $13,684 at 10.5% compounded monthly?

(a) How many years will it take for $7500 to accumulate to $9517.39 at 3% compounded semi-annually? (b) Over what period of time will money triple at 9% compounded quarterly? (c) How many years will it take for a loan of $10,000 to amount to $13,684 at 10.5% compounded monthly?

Corporate Fin Focused Approach

5th Edition

ISBN:9781285660516

Author:EHRHARDT

Publisher:EHRHARDT

Chapter4: Time Value Of Money

Section4.17: Amortized Loans

Problem 1ST

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Concept explainers

Amortized Loans

The term "amortization" refers to spreading the value of a loan or a debt over a series of regular payments or installments comprising of both the principal and interest amount. It generally involves the process where in the value of a loan or an intangible asset is written down over its maturity period.

Question

(a) How many years will it take for $7500 to accumulate to $9517.39 at 3% compounded semi-annually?
(b) Over what period of time will money triple at 9% compounded quarterly?
(c) How many years will it take for a loan of $10,000 to amount to $13,684 at 10.5% compounded monthly?
(a) It will take 8 years.
(Round the final answer to two decimal places as needed. Round all intermediate values to six decimal places as needed.)
(b) The money will triple in
quarters.
(Round the final answer to two decimal places as needed. Round all intermediate values to six decimal places as needed.)

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