Investors are often interested in knowing how long it takes for a particular investment to double. A

Question:

Investors are often interested in knowing how long it takes for a particular investment to double. A simple means for making this determination is the “rule of 70,” which says: The doubling time of an investment with an annual interest rate r% compounded continuously is given by d = 70/r.

For interest rate r, use the formula B = Pert to find the doubling time for r = 4, 6, 9, 10, and 12. In each case, compare the value with the value obtained from the rule of 70.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Calculus For Business, Economics And The Social And Life Sciences

ISBN: 9780073532387

11th Brief Edition

Authors: Laurence Hoffmann, Gerald Bradley, David Sobecki, Michael Price

Question Posted: