POST FIN201 Unit 2.1 DB: How to use the Rule of 72 to estimate Compound Interest latest 2016 february
Question # 00202453
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Updated on: 02/21/2016 05:06 AM Due on: 03/22/2016
The Rule of 72 states that IF rate*time=72, your investment will double.
Referring to the example if $1000 grows to $2000 in ten years, you see that this is a double. Thus, rate * time=72. Plug in the 10 years for time, and the formula becomes...rate * 10 years=72. Thus, rate=7.2% !
Give an example of purchase, or investment or other matter in your personal financial life when this formula would have been a usefull tool.
Referring to the example if $1000 grows to $2000 in ten years, you see that this is a double. Thus, rate * time=72. Plug in the 10 years for time, and the formula becomes...rate * 10 years=72. Thus, rate=7.2% !
Give an example of purchase, or investment or other matter in your personal financial life when this formula would have been a usefull tool.
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Solution: POST FIN201 Unit 2.1 DB: How to use the Rule of 72 to estimate Compound Interest latest 2016 february