Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

An investment of $6800 is expected to pay $10,000 at an annual interest rate of 10%. How many years will it take to realize this

image text in transcribed
An investment of $6800 is expected to pay $10,000 at an annual interest rate of 10%. How many years will it take to realize this return on the investment? You have inherited $30,000 from a wealthy relative and are trying to choose between two long term investments. One fund pays 4% and the other 6%. You would like to have the money available in 36 years, Using the Rule of 72 , how would you calculate the advantages of each investment

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

All About Options

Authors: Thomas McCafferty

3rd Edition

0071484795, 978-0071484794

More Books

Students also viewed these Finance questions

Question

4. What are the current trends in computer software platforms?

Answered: 1 week ago