SOLUTION: suppose you invest $4300 in an account that ears 6% intrest, and you let it grow for 12 years. About how much would you expect to have after those 12 years? Use rule 72.

Algebra ->  Finance -> SOLUTION: suppose you invest $4300 in an account that ears 6% intrest, and you let it grow for 12 years. About how much would you expect to have after those 12 years? Use rule 72.      Log On


   

Question 1109898: suppose you invest $4300 in an account that ears 6% intrest, and you let it grow for 12 years. About how much would you expect to have after those 12 years? Use rule 72.
Answer by josgarithmetic(39617) About Me  (Show Source):
You can put this solution on YOUR website!
6% for 12 years,...
Assuming continuous compounding

4300%2Ae%5E%2812%2A0.06%29

8834
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If you are asking for the use of Rule of 72, then the doubling time is what is expected to be estimated.
t, the time to double
r, the percent growth rate, AS PERCENT
t=ln%282%29%2Fln%281%2Br%2F100%29=approximately=72%2Fr

but your question was, "about how much would you expect to have after those 12 years"; nothing about doubling was asked.

t=72%2F6
t=12------the estimated time for doubling using this approximation rule is about 12 years.