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Posted on Feb 25, 2009
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How long will it take wendys $4000 investment,

How long will it take Wendy's $4000 investment, compounded at 5% annual interest, to earn an additional $2000

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kakima

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  • Texas Instru... Master 102,366 Answers
  • Posted on Mar 09, 2010
kakima
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Press APPS and select the Finance app. Select the TVM Solver.

Enter -4000 for PV, 0 for PMT, 6000 for FV. Be sure you use the (-) key for PV, not the - key. P/V and C/Y should both be 1 and PMT should be END.

If you want 5% annual interest compounded month, enter 5/12 for I%. If you simply want 5% annual interest, enter 5 for I%. Go to N and press ALPHA ENTER to see the number of periods (months or years according to what you entered earlier in this paragraph).

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Related Questions:

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2answers

What is the method of calculating interest rate for fixed deposit?

Fixed deposit calculations can be done by both manual and automatic methods.Now let us figure out the fd calculation in both ways:
1.) Manual Calculation Technique: It is the conventional process to know your Fixed deposit interest calculation. The formula for manual fd calculation is used as below:

Where,A = Final Amount
P = Principal Amount (initial investment)
r = Annual Nominal Interest Rate (as a decimal, not in percentage)
n = Number of times the interest is compounded per year
t = Number of years

2.) Online Calculator Technique: Nowadays online FD calculator is very amazing technique and it is a very useful online tool that helps you to easily calculate your Fixed deposit return. Online FD calculators uses simple technique in which you need to put your amount, tenure, interest rate and can get accurate results instantly. You can easily calculate and compare the interest receivable by changing the deposit amount.
Mar 18, 2018 • Finance
1helpful
1answer

Please help me solve this equation. What is the principal that must be invested for 6 years at 10.5% to earn R2200.50 simple interest

With simple interest, there is no compounding. To earn 2200.50 interest in six years, you need to earn 2200.50/6 = 366.75 each year. In order to earn 366.75 at 10.5%, you need a principal of 366.75/10.5% = 3492.86.

If the interest is compounded annually then you only need to invest 2682.13.
0helpful
1answer

If $2,000 left in an account for 4 years earns an interest of $320 how much would be earned if you deposit $5,000 for 7 years?

You have to say if simple or compound interest, and whether annual interest or some other period. Assuming compound interest annually, it is 3.78%, for the second case, earnings are $1483
0helpful
1answer

Compound interest

Well if you started with zero in the first year, then $164494, of which $30000 was yours, so earnings are 134494.

If you started with $1000, then $181943, of which $31000 was yours, so earnings are $150943
0helpful
1answer

I want to invest R10000 in a bank investing at 14% compounded twice a year

Invest R10000 in a bank investing at 14% compounded twice a year.

A = P(1+i)^n, where A is the amount, P is the principal or initial investment, i is the interest rate per period, and n is the number of periods.

If the annual rate is 14%, the semi-annual rate is 7%. One year is now composed of 2 6-month periods.

So after one year, we have A = 10 000 (1.07)^2 or 11,449.

Good luck,

Paul
0helpful
1answer

What buttons do I push in what order to figure compound interset. if I start with$15,000.00 at 6% interset for 25 years. I am on a texas instrument ba 2 plus

If the interest is compounded monthly:

2nd [CLR TVM] (clear any existing results)
1 5 0 0 0 _/- PV (present value, negative because you're paying it out)
6 I/Y (annual interest rate)
25 2nd [*P/Y] N (25 years)
CPT FV (compute future value, see 66,974.55)

If the interest is compounded annually:

2nd [CLR TVM] (clear any existing results)
1 5 0 0 0 _/- PV (present value, negative because you're paying it out)
6 I/Y (annual interest rate)
2nd [P/Y] 1 ENTER 2nd [QUIT] (one compounding period per year)
25 N (25 years)
CPT FV (compute future value, see 64,378.96)
0helpful
1answer

Need your help

Try the FV function Syntax
FV(rate,nper,pmt,pv,type)
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