Question;Unit 2.1 DB: How to use "Rule of 72" to estimateThe 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%!QUESTIONS:Using the Rule of 72, estimate how long it will take to double your investment if you earn 6%?If you earn 8%?If you earn 12%?
Paper#48214 | Written in 18-Jul-2015Price : $22