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rule_of_724.docx - Rule of 72 Rule of 72 72 / interest rate...

  • Hortonville High
  • ECON 101
  • BrigadierUniverse9185
  • 1
  • 100% (5) 5 out of 5 people found this document helpful

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Rule of 72Rule of 7272 / interest rate= years to double investment72 / the years it takes to double=interest rateUse the Rule of 72 to answer the following questions1What annual interest rate will cause your money to double in four years?
2Tanner has invested $500 for college. What rate of return must Tanner earn for his investment to double in sixyears?
3Jerrod owes $2,000 on a credit card that charges him an annual percentage rate of 18%. If Jerrod stopped makingpayments, how long would it be before the balance on his credit card reached $4,000?
4Because Jerrod missed a payment, the credit card company automatically raised the interest rate to 24%. Howmany years would it be until his balance doubles, assuming he continues to make no payments?
5Emily got a new job that guarantees her a 6% raise every year. If she started out making $25,000, how long will it
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