Use Your Graphing Calculator to Find How Long It Will

question 167

Multiple Choice

Use your graphing calculator to find how long it will take for $6600 invested at 5.85% per year compounded daily to triple in value. Find the answer to the nearest year.

• A) 25,219 years
• B) 19 years
• C) 0 years
• D) 2,502,126 years

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Definitions:

Coupon Bonds

Debt securities that pay holders a fixed interest rate (the coupon) on a periodic basis until the bond matures, at which point the principal amount is repaid.

Par

The face value of a bond or other financial instrument, typically the amount at which it will be paid out upon maturity.

Yield

The earnings generated from an investment, including interest or dividends, that result from owning a specific financial instrument.

Premium Bond

A bond sold for more than its face value, typically occurring when its interest rate is higher than the current market rate.