Answered: Calculate the time it will take for an…

Calculate the time it will take for an investment of $25 000, invested at a simple interest rate of 5.5% p.a. to become $25 678.08. A 90 days B 180 days C 270 days D 1 year

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter5: The Time Value Of Money

Section: Chapter Questions

Problem 2P

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Concept explainers

Production Budget

A budget can be defined as a financial plan designed by an undertaking for a definite period in the future that can contribute towards enhancing the financial success of the business undertaking. It is used to estimate the revenue and expenses. The budget generally takes into account both current and future income and expenses.

Question

. Calculate the time it will take for an investment of $25 000, invested at a simple interest rate of 5.5% p.a. to become $25 678.08.

A 90 days

B 180 days

C 270 days

D 1 year

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