Hunter112233
contestada

Armando put $78 into a CD that pays 4.9% interest. According to the rule of
72, approximately how long will it take for his money to double?
O
O
A. 159.2 years
B. 15.9 years
O
C. 14.7 years
O
D. 146.9 years
SUBMIT

Respuesta :

letmeanswer

It will take 14.7 years for Armando's money to double.

Option C

Explanation:

The rule of 72 is generally used to estimate the number of years required to double the invested money at a given annual rate of return. And alternatively to find the number of years required to double the money at a given interest rate, we have to just divide the interest rate into 72.

Here, the interest rate is 4.9%. Therefore, it would be as follows

[tex]\Rightarrow\frac{72}{4.9} = 14.7 \text{ years }[/tex]

Rule 72 can be used to identify the following:

  • Number of years it takes an investment to double,
  • Number of years it takes debt to double,
  • The interest rate must earn to double in a time frame,
  • Number of times debt or money will double in a period of time.

Answer: 14.7

Step-by-step explanation:

A P E X

Otras preguntas