Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
Related questions
Question
If you depoist money today in an account that pays 14% annual interest, how long would it take to double your money? Round two decimal places. ______ years
Expert Solution
Step 1
Rule 72 is the equation that is best used to find the duration it would take to double the amount at a specific rate of return.
The formula used is:
Years to double = 72/Interest rate
Here interest rate is the rate of return on the investment
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