3. Suppose that when you were one year old, your grandmother gave you a shiny silver dollar....

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3. Suppose that when you were one year old, your grandmother gave you a shiny silver dollar.

Your parents put that silver dollar in a savings account with a guaranteed 9% interest rate, and then promptly forgot about it.

a. Use the Rule of 72 to estimate how much that account will grow to by the time you are 65.

b. Calculate exactly how much you will have in that account using the formula for compound interest.

c. How close are your answers to

(a) and (b)?

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Microeconomics

ISBN: 9780716759751

1st Edition

Authors: Austan Goolsbee, Steven Levitt, Chad Syverson

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Question Posted: Oct 16, 2024 02:02 AM

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3. Suppose that when you were one year old, your grandmother gave you a shiny silver dollar....

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Microeconomics

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