ECONOMICS
COMPOUND INTEREST
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Compounded Continuously Invested $400 at a rate of 35% for 8 months
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$520.07
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$505.12
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$460.11
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$7, 643.74
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Explanation:
Detailed explanation-1: -To use the Rule of 72 in order to determine the approximate length of time it will take for your money to double, simply divide 72 by the annual interest rate. For example, if the interest rate earned is 6%, it will take 12 years (72 divided by 6) for your money to double.
Detailed explanation-2: -Answer: Approximately 13.5 years to triple.
Detailed explanation-3: -According to the Rule of 72, it would take about 14.4 years to double your money at 5% per year.
Detailed explanation-4: -Ending Investment = Start Amount * (1 + Interest Rate) ^ n For daily compounding, the interest rate will be divided by 365, and n will be multiplied by 365, assuming 365 days in a year.
There is 1 question to complete.