
Subpart (a):
Rule of 70.
Subpart (a):

Explanation of Solution
By the rule of 70, if one invests $3000 in a bank account and earns 2% real annual return on average, then it would take 35 years
Concept introduction:
Rule of 70: By the rule of 70, if the
Subpart (b):
Rule of 70.
Subpart (b):

Explanation of Solution
By the rule of 70, if one invests $3000 in mutual and earns 7% real annual return on average, then it would take 10 years
Concept introduction:
Rule of 70: By the rule of 70, if the rate of return which is the annual percentage increase in value including dividends is x% of an investment, then the doubling time is
Subpart (c):
Rule of 70.
Subpart (c):

Explanation of Solution
By the rule of 70, if one invests $3000 together in bank and mutual fund and earns 5% real annual return on average, then it would take 14 years
Concept introduction:
Rule of 70: By the rule of 70, if the rate of return which is the annual percentage increase in value including dividends is x% of an investment, then the doubling time is
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Chapter 23 Solutions
Sapling Learning Single-Course Homework-Only for Principles of Microeconomics (Access Card)
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