Personal Finance Tax Update
13th Edition
ISBN: 9780357438947
Author: E. Thomas Garman; Raymond Forgue
Publisher: Cengage Learning US
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Question
Chapter 1, Problem 9DTM
Summary Introduction
To calculate:The number of years to double the money.
Introduction: Rule of 72 is one of the direct rules of finance to find the time period to double the money invested. As per this rule, one can calculate the estimated number of years in which money can be doubled. As per this rule, 72 numbers is divided by the interest rate number to find the number of years to double the money.
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Students have asked these similar questions
In your own words, explain how compounding works. According to the
rule of 72, if you deposit $100 in an account that pays 9% compound
interest, how long will it take that initial deposit to reach $200?
Use the matrix given below. For each type of investment, record this
information: • Is the risk high, moderate, or low? • Is the return high,
moderate, or low? • How does this type of investment work? Explain
in one or two sentences.
Consider an investment that pays off $700 or $1,400 per $1,000 invested with equal probability. Suppose you have $1,000 but are
willing to borrow to increase your expected return. What would happen to the expected value and standard deviation of the
investment if you borrowed an additional $1,000 and invested a total of $2,000? What if you borrowed $2,000 to invest a total of
$3,000?
Instructions: Complete the table below to answer the questions above. Enter your responses as whole numbers and enter percentage
values as percentages not decimals (i.e., 23% not 0.23). Enter a negative sign (-) to indicate a negative number if necessary.
Invest $1,000
Invest $2,000
Invest $3,000
Expected Value
$
1050
1200
$
$ 1300
Percentage
20 %
30 %
40 %
Standard Deviation
300
600
900
Expected Return
N/A
Doubled
Tripled
1. Select one of the following questions to answer:
If I invest $1000 at 3% interest, how long will take for my money to double?
If I invest $1000 at 6% interest, how long will take for my money to double?
If I invest $1000 at 8% interest, how long will take for my money to double?
If I invest $1000 at 12% interest, how long will take for my money to double?
Chapter 1 Solutions
Personal Finance Tax Update
Ch. 1.1 - Prob. 1CCCh. 1.1 - Prob. 2CCCh. 1.1 - Prob. 3CCCh. 1.1 - Prob. 4CCCh. 1.2 - Prob. 1CCCh. 1.2 - Prob. 2CCCh. 1.2 - Prob. 3CCCh. 1.3 - Prob. 1CCCh. 1.3 - Prob. 2CCCh. 1.3 - Prob. 3CC
Ch. 1.4 - Prob. 1CCCh. 1.4 - Prob. 2CCCh. 1.4 - Prob. 3CCCh. 1.5 - Prob. 1CCCh. 1.5 - Prob. 2CCCh. 1.5 - Prob. 3CCCh. 1.5 - Prob. 4CCCh. 1.6 - Prob. 1CCCh. 1.6 - Prob. 2CCCh. 1.6 - Prob. 3CCCh. 1.6 - Prob. 4CCCh. 1 - Real Income. Joshua Vermier of Sacramento,...Ch. 1 - Prob. 2DTMCh. 1 - Prob. 3DTMCh. 1 - Prob. 4DTMCh. 1 - Using the present and future value tables in...Ch. 1 - Inflation. Laureen Mauers salary a year ago was...Ch. 1 - Prob. 7DTMCh. 1 - Prob. 8DTMCh. 1 - Prob. 9DTMCh. 1 - Prob. 1FPCCh. 1 - Victor and Maria Hernandez Look at Future Income...Ch. 1 - Prob. 3FPCCh. 1 - Prob. 4FPCCh. 1 - Prob. 5FPCCh. 1 - Prob. 1BYOPFMCh. 1 - Prob. 3BYOPFMCh. 1 - Prob. 4BYOPFMCh. 1 - Present Value of a Lump Sum. Complete Worksheet 4:...Ch. 1 - Prob. 6BYOPFM
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