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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
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
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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.
Transcribed Image Text: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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