Use the Rule of 72. If $10,000 is invested for 36 years at 6%, how many times will the value double according the to the Rule of 72? What will be the value of the account in 36 years? How much is interest?
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3.a. According to the Rule of 72, how long will it take $1,000 to double if the interest rate is 8%? 3.b. How long will it take the $1,000 to grow to $16,000? Rule of 72 4.a. What is the value ten years hence of $1,000 invested today at 8% interest, $2,000 invested at the end of year five, and $3,000 invested at the end of year eight?
Using the rule of 72 how soon will money double at the following interest rates (Answer all five) A) 8%----will double in years B) 12%----Will double in years C) 4%----will double in years D) 3%----will double in years E) 10%----will double in _years Using the rule of 72 what interest will I need to earn to get my money to double in (A) 6 years _interest required (B) 12 years interest required
3. Investment Horizons. How long does the Rule of 72 predict that it will take for $500 to double in value when the effective annual interest rate is 1 percent? Exactly how many years will it take for $500 to double in value when the effective annual interest rate is 1 percent?
Time Value of Money Problems Amt./Annuity PV/FV 1.a. The Lexington Development Co. has a $10,000 note receivable from a customer due in three years. How much is it worth today if the interest rate is 9%? 1.b. How is it worth today if the interest rate is 12% compounded quarterly? 2.a.What will a deposit of $4,500 left in the bank be worth if left in the in the bank for nine years at 7% interest? 2.b.If left for six years...
Question 2 (0.5 points) Use the Rule of 72 to approximate how many years it will take money to double when growing at an interest rate of 4% per year.
Using the Rule of 72, approximately how many years are needed to double a $100 investment when interest rates are 7.50 percent per year? (Round your answer to 2 decimal places.)
ASSIGNMENT 1 1. Katie says the “Rule of 72” is a great mental math shortcut to estimate the effect of any growth rate, from quick financial calculations to population estimates. Here's the Rule of 72 formula in terms of the time value of money: (Number of compounding periods to double your money) = 72 / [Interest Rate (%)] This formula is useful for financial estimates and understanding the nature of compound interest. Use the Rule of 72 to estimate the...
3. The "rule of 72" says to divide 72 by the annual interest rate to estimate the number of years needed for an initial investment earning that rate to double. How long would it take for $5 earning 6% a year to grow to $20? a. 12 years b. 24 years c. 36 years d. 48 years 4. If the tractor costs $124.000 (also the loan amount), and the 8 percent loan will be paid back in 5 equal annual...
answer 2.19
answer with the solution obtained by the Rule of 72 (discussed in Example 2.. 2.19 In 1739, Nader Shah sold the Kohinoor diamond to Queen Victoria for $34. If he saved just $5 from the proceeds in a bank account that paid an 6% ann interest, how much would his descendents have in 2020? want to withdraw $20,000 at the end of two years and $55.000 at the end
Question Help Use the "Rule of 72" to determine the following (a) The number of years it takes to accumulate $13,000 in a savings account when P-36,500 and i 9% per year (b) The number of years it takes to accumulate $26,000 in a savings account when P-36.500 and i-9% per year. (c) The average annual interest rate. i required to double an initial investment P in 17 years. (a) The number of years it takes is B (Round to...