Explain the Rule of 72.

Question:

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

Step by Step Answer:

Related Book For book-img-for-question

Finance for Non Financial Managers

ISBN: 978-0176530839

7th edition

Authors: Pierre Bergeron

See More Books

Question Posted: Dec 03, 2014 09:19 AM

See More Questions

Rule of 69.3 a corollary to the Rule of 72 is the Rule of 69.3. The Rule of 69.3 is exactly correct except for rounding when interest rates are compounded continuously. Prove the Rule of 69.3 for...
The rule of 72 states that if rate * time = 72, your investment will double. Referring to the example if $1000 grows to $2000 in ten years, you see that this is a double. Thus, rate * time = 72. Plug...
A corollary to the Rule of 72 is the Rule of 69.3. The Rule of 69.3 is exactly correct except for rounding when interest rates are compounded continuously. Prove the Rule of 69.3 for continuously...
The data below provides weekly sales for the past 12 weeks (weeks 21-32). Week Sales 21 4,000 22 3,655 23 3,958 24 3,983 25 4,538 26 4,120 27 4,692 28 4,421 29 4,859 30 5,030 31 5,540 32 5,670 Use a...
For an up-and-coming brand of fashionable jeans, a re-branded local night club for dancing, and an established energy drink, identify the most appropriate media budget allocation (in percentages) to...
Write a plausible equation for the decay of tritium, 3 1 H, the radioactive isotope of hydrogen.
Nimby plc is considering two mutually exclusive projects: Delphi and Oracle. The possible NPVs for each project and their associated probabilities are as follows: Delphi Oracle NPV m Probability of...
The town council of Riverside met in December 2011. The council estimated revenues for 2012 to be $750,000 from property taxes and $150,000 from business licenses. The appropriations budget from the...
An 8-year T-Bond can be stripped into how many separate securities? A. 9 B. 17 C. 16 D. 8 E. 18
Taxpayer A purchased $ 100,000 of corporate bonds yielding 12.5% per annum; the interest income from these bonds is taxed at a rate of 28%. Taxpayer B purchased $ 100,000 of municipal bonds yielding...
What do the symbols, PMT, A, and S mean?
Why are cash and time critical elements in investment decisions?
Risk tolerance comes from risk capacity and risk attitude. What are the major determinants of risk capacity and risk attitude?
The relationship between income and savings, let's look back to the recent credit crisis that sent our economy into the greatest financial crisis since the Great Depression. Watch this short video...
Jos Lpez has $15,000 in a 6-year certificate of deposit (CD) that pays a guaranteed annual rate of 4%. Create a timeline showing when the cash flows will occur. (6 points) 2. Oliver Lpez deposits...
PROBLEM SET #2 At a large urban college, about half of the students live off campus in various arrangements, and the other half live on campus. Is academic performance dependent on living...
Post a compelling argument stating whether leaders are born, made, or a combination of both. Drawing from the discussion of the two current peer-reviewed articles you identified, support your...
Unicorn Inc. builds commercial jets and calculate the cost for each jet. For each item below, indicate whether it would be most likely classified as direct labor (DL); direct materials (DM);...
On 30 September 19X7, B Wright, who prepares final accounts annually to 30 September, bought a motor lorry on hire purchase from the Vehicles and Finance Co. Ltd. The cash price of the lorry was...
On April 29, 2015, Auk Corporation acquires 100% of the outstanding stock of Amazon Corporation (E & P of $750,000) for $1.2 million. Amazon has assets with a fair market value of $1.4 million (basis...
Great Eats needs $2,000,000 to finance a new restaurant in Mytown. The project will be funded from the following sources. Great Eats' effective tax rate is 34 percent with taxes paid annually....
Your firm sells for cash only; but it is thinking of offering credit, allowing customers 90 days to pay. Customers understand the time value of money, so they would all wait and pay on the 90th day....
Erika and Kitty, who are twins, just received $30,000 each for their 25th birthday. They both have aspirations to become millionaires. Each plans to make a $5,000 annual contribution to her early...
Starting next year, you will need $10,000 annually for 4 years to complete your education. (One year from today you will withdraw the first $10,000.) Your uncle deposits an amount today in a bank...
Show that the convexity for a zero coupon bond with m payments per year is (m) n(n + -)(1+ m m
Abdul Canarte , a Central Bank economist, noticed that the total group purchasing basket of goods (CPI) has gone from $149,740.00 to $344,460.00 in 8 years. With monthly compounding, what is the...
ABC Corporation expects sales next year to be $50,000,000. Inventory and accounts receivable (combined) will increase $8,000,000 to accommodate this sales level. The company has a profit margin of 6...

Explain the Rule of 72.

Question:

Step by Step Answer:

The Rule of 72 is an easy way to approximate the n...View the full answer

Finance for Non Financial Managers

Students also viewed these Finance questions