Using the rule of 72, determine the approximate time it will take $1,000 to double given the following interest rates.a) 5.5%b) 10.0%c) 30.0%d) 2.0%e) 4.5%
What will be an ideal response?
Since the rule of 72 says if we take 72/i we get the approximate number of years it takes for an amount to double, we can determine the answer for each interest rate.
a) 72/5.5 = 13.1 years
b) 72/10 = 7.2 years
c) 72/30 = 2.4 years
d) 72/2 = 36 years
e) 72/4.5 = 16 years
You might also like to view...
Tax evasion is
a. facilitated by legal deductions to taxable income. b. the same as tax avoidance. c. recommended by the American Accounting Association. d. illegal.
Choosing to have your clothes laundered instead of starching and ironing them yourself because it takes you an hour to iron shirts because you can do many other things in a hour more productively is an example of:
a. Sunk Cost b. Time Value of Money c. Law of Comparative Advantage d. Law of Supply and Demand
The price an economy pays for lower unemployment is ______.
a. higher inflation b. higher real wages c. declining stock values d. lower price volatility
Innovation:
A. is the first discovery of a product or process, rather than its first successful commercial introduction. B. includes new products but not new production methods. C. is also known as diffusion. D. can either increase or decrease the market share of a large firm, depending on whether it is introduced by the large firm or one of its competitors.