1) Use the "Rule of 72" to estimate the number of years required to quadruple (4 times) an original principal if it earns an interest rate of 9% per year. А. 32 В. 4 C. 24 D. 16 Е. 8
1) Use the "Rule of 72" to estimate the number of years required to quadruple (4 times) an original principal if it earns an interest rate of 9% per year. А. 32 В. 4 C. 24 D. 16 Е. 8
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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![1) Use the "Rule of 72" to estimate the number
of years required to quadruple (4 times) an
original principal if it earns an interest rate of
9% per year.
А. 32
В. 4
C. 24
D. 16
Е. 8
2) If the nominal interest rate is 12% per year
compounded monthly, then the effective
quarterly interest rate is
A)less than 3%
B,) equal to 3%
C), or greater than 3%](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F3a18361e-396d-4c9a-b3f1-5e07abf44dc7%2Fb7e618c4-a981-4910-ab29-d772c271d0a7%2Ffxw0m8k_processed.jpeg&w=3840&q=75)
Transcribed Image Text:1) Use the "Rule of 72" to estimate the number
of years required to quadruple (4 times) an
original principal if it earns an interest rate of
9% per year.
А. 32
В. 4
C. 24
D. 16
Е. 8
2) If the nominal interest rate is 12% per year
compounded monthly, then the effective
quarterly interest rate is
A)less than 3%
B,) equal to 3%
C), or greater than 3%
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