Question

using rule of 72, calculate you are hoping that your investment of$5000 will double in 7...

using rule of 72, calculate you are hoping that your investment of$5000 will double in 7 years. what interest rate do you need to earn to make this happen
0 0
Add a comment Improve this question Transcribed image text
Answer #1

Investment Amount = PV = $5000

Let Interest Rate = r

Number of Years = 7

Future Value (FV) required after 7 years = 2*5000 = $10000

We know that FV = PV(1+r)n

=> 10000 = 5000(1+r)7

=> r = (10000/5000)1/7 - 1 = 0.1041 or 10.41%

Add a comment
Know the answer?
Add Answer to:
using rule of 72, calculate you are hoping that your investment of$5000 will double in 7...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT