Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Personal finance advisors sometimes use the Rule of 72 to estimate how long it will take for an investment to double if it earns a

image text in transcribed

Personal finance advisors sometimes use the "Rule of 72" to estimate how long it will take for an investment to double if it earns a certain percent per year. The Rule of 72 says that the amount of time for an investment to double, in years, can be estiimated by taking the number 72 and dividing by the percent it earns per year. For example, if an investment earns 2% per year, then it will take 272=36 years to double the investment. Suppose an investment earns 9% per year. It starts with $6200 in the account. Use this information to find the values of the missing cells in the table

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

Financial Trading And Investing

Authors: John Teall

1st Edition

0123918804, 978-0123918802

More Books

Students also viewed these Finance questions

Question

Define text analytics.

Answered: 1 week ago