« previous next »

Author Question: The Rule of 72 can be used to quickly estimate interest rates necessary to double your money in a ... (Read 51 times)

nmorano1

  • Hero Member
  • *****
  • Posts: 598
on: Jul 10, 2018
The Rule of 72 can be used to quickly estimate interest rates necessary to double your money in a given time period without the use of a spreadsheet or calculator. However, the rule does NOT work for estimating growth rates.
 
  Indicate whether the statement is true or false.

Question 2

Given enough time, you could double your money with a risk-free investment.
 
  Indicate whether the statement is true or false.


chereeb

  • Sr. Member
  • ****
  • Posts: 326
Reply #1 on: Jul 10, 2018
Answer to Question 1

Answer: FALSE
Explanation: The Rule of 72 works for any rate of change, not just interest rate returns.

Answer to Question 2

Answer: TRUE


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
« previous next »
 

Did you know?

Urine turns bright yellow if larger than normal amounts of certain substances are consumed; one of these substances is asparagus.

Did you know?

In Eastern Europe and Russia, interferon is administered intranasally in varied doses for the common cold and influenza. It is claimed that this treatment can lower the risk of infection by as much as 60–70%.

Did you know?

The shortest mature adult human of whom there is independent evidence was Gul Mohammed in India. In 1990, he was measured in New Delhi and stood 22.5 inches tall.

Did you know?

Of the estimated 2 million heroin users in the United States, 600,000–800,000 are considered hardcore addicts. Heroin addiction is considered to be one of the hardest addictions to recover from.

Did you know?

Liver spots have nothing whatsoever to do with the liver. They are a type of freckles commonly seen in older adults who have been out in the sun without sufficient sunscreen.

A double bond between two oxygen atoms A double bond between two oxygen atoms
Change in air temperature at various air flow rates for a 4 pass operation Change in air temperature at various air flow rates for a 4 pass operation
How to quickly find the vertex of a quadratic equation that is in standard form How to quickly find the vertex of a quadratic equation that is in standard form
How to use Cramer's rule to solve a second-order determinant (Question 1) How to use Cramer's rule to solve a second-order determinant (Question 1)
To find derivative us the chain rule To find derivative us the chain rule
A double crossover is undetected A double crossover is undetected
Video: What are Strong & Weak Acids and How they're different?

For a complete list of videos, visit our video library