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Corporate Finance, Quiz 1

January 2025 term, 23 Feb 2025, Set QDB2

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Question 1

+4−0Single correct

What should be the rate of interest per year (annually compounded) so that your money triples in 10 years?

Select one option

A.
5.42%
B.
7.60%
C.
11.61%
D.
20.00%

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What should be the rate of interest per year (annually compounded) so that your money triples in 10 years? An investment is expected to yield Rs 2,000 in two years, Rs 4,000 in 4 years, and Rs 6,000 in six years. If the constant rate of return is 10% (compounded annually), what is the present value of this investment (Rounded off to nearest integer)? Suppose an asset earns an annual interest rate of 9% which is continuously compounded. If the asset sells for Rs 500 today, what will be its value after 3 years (Rounded off to nearest integer)?