Kelvin has $2,500 but needs $5,000 to purchase a new golf cart
If he can invest his money at a rate of 12% per year, approximately how many years will it take the money in Kelvin's account to grow to $5,000? Use the Rule of 72 to determine your answer.
Note: The golf cart's price may have changed by the time Kelvin's account reaches a value of $5,000.
A) 2 years
B) 4 years
C) 6 years
D) 8 years
Answer: C
Explanation: C) = 6 years via the Rule of 72.
You might also like to view...
What is activity-based management? How is it different from activity-based costing?
What will be an ideal response?
What is the basis of an accountant's potential criminal liability in rendering professional services?
The resource-based view (RBV) of the firm combines the following two perspectives:
A. the internal analysis of the firm and the external analysis of the industry and competitive environment. B. the primary and support activities of the firm. C. the interrelationships among the primary activities of the firm and corporate management. D. the industry and the competitive environment.
Benford Bank recently opened a school with kindergarten through fifth grade classes run by the county school system and a child-care center at its headquarters office park. By providing "work-and-family" benefits designed to help employees balance the stresses of a demanding job and family life, Benford Bank is:
A. Promoting teamwork B. Empowering employees C. Including employees in the company vision D. Measuring and rewarding strong service performers E. Treating employees as customers