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

ENGR.ECONOMIC ANALYSIS
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Chapter1: Making Economics Decisions
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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%
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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