contestada

Using the Rule of 72, how long would it take for Anthony to double his investment of $5,000 in a
money market account that earns 7% per year?

Respuesta :

Answer: About 10.2857 years

=============================================================

Explanation:

For the rule of 72, we divide the number 72 over the interest rate without the percent sign. We do not convert to decimal form. Simply erase the percent sign.

For example, if the interest rate was 6%, then we estimate it would take 72/6 = 12 years for the amount to double.

In this case of a 7% interest rate, the doubling time is roughly 72/7 = 10.2857 years.

-------------

Extra Notes:

  • The starting deposit doesn't matter, so we can ignore the "5000".
  • The interest rate must stay the same the entire time.

Otras preguntas