ECONOMICS
COMPOUND INTEREST
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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How long will it take for the value of an initial investment of $1200 compounded continuously at a 5.6% interest rate to reach $2000.
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9.57 years
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9.04 years
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9.12 years
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.091 years
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Explanation:
Detailed explanation-1: -Answer and Explanation: Hence, it will take approximately 36.62 years to triple the investment when compounded continuously.
Detailed explanation-2: -According to the Rule of 72, it would take about 14.4 years to double your money at 5% per year.
Detailed explanation-3: -Answer: Approximately 13.5 years to triple.
Detailed explanation-4: -Thus, the interest rate should be 41.42%.
There is 1 question to complete.