Use the rule of seventy-two to approximate the length of time it takes money to double at an annual effective interest rate of 5% and then at an annual effective rate of 10%. Then find the exact time it takes for money to double at each of these interest rates.

Use the rule of seventy-two to approximate the length of time it takes money to double at an annual effective interest rate of 5% and then at an annual effective rate of 10%. Then find the exact time it takes for money to double at each of these interest rates.

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

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Question

Use the rule of seventy-two to approximate the length of time it takes money to
double at an annual effective interest rate of 5% and then at an annual effective
rate of 10%. Then find the exact time it takes for money to double at each of
these interest rates.

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