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1. If you invest $5,000 in mutual fund expected to earn an 8% annual rate of return,  how long would it take (in years) for your investment to be worth $10,000?

 

2. If you invest $5,000 in mutual fund expected to earn an 8% annual rate of return,  how long would it take (in years) for your investment to be worth $20,000?

 Dec 7, 2020
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10 000 = 5000(1 + .08)n        solve for n

2 = 1.08^n

log2 / log 1.08 = n = ......

 

 

second one:

20 000 = 5000 (1+ .08)n

 Dec 7, 2020

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