SOLUTION: A rule of thumb for finding how long it takes an investment to double is called the rule of seventy. To apply the rule, divide 70 by the interest rate written as a percent. At 5% a
Algebra.Com
Question 312862: A rule of thumb for finding how long it takes an investment to double is called the rule of seventy. To apply the rule, divide 70 by the interest rate written as a percent. At 5% an investment takes 70/5 = 14 years to double. At 7%, it takes 70/7=10 years. Explain why this formula works.
Answer by checkley77(12844) (Show Source): You can put this solution on YOUR website!
500(1+.07)^10
500(1.07)^10
500*1.967=$983 ans.
500(1.05)^14
500(1.05)^14
500*1.98=$989 ans.
RELATED QUESTIONS
The rule of 72 is a rule of thumb for finding how long it takes money at interest to... (answered by Theo)
Please Help I dont understand the 72 Rule.
Use the rule of 72 to estimate how long it... (answered by MathLover1)
A $5000 investment that grows at annual rate of 6% can be modeled by the function:
y =... (answered by stanbon)
The rule of 72 states that if an investment earns p % interest per year, it will take... (answered by Theo)
Find out how long it takes for an investment of $2500 to double if it is invested at 8%... (answered by stanbon)
Investors sometimes use the rule of 72 to determine the time required to double an... (answered by rfer)
Boat builders share an old rule of thumb for sailboats. The maximum speed K in knots is... (answered by ankor@dixie-net.com)
Taylor put $200 into a CD that pays 6% interest, compounded quarterly. According to the... (answered by Alan3354)
What is the rule for finding... (answered by stanbon)