Answer: to find out how long it will take for your money to double.
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what tells you how long it will take for your money to double at a given interest rate?
a high interest rate and long time period. ... what tells you how long it will take for your money to double at a given interest rate ? ... a good type of account when a person wants to start savings and needs to withraw money easily.; Subjects. Arts and Humanities. Languages. Math. …
The rule says that to find the number of years required to double your money at a given interest rate you just divide the interest rate into 72. For example if you want to know how long it will take to double your money at eight percent interest divide 8 into 72 and get 9 years.
Fin301 Chapter 9 Time Value of Money . STUDY. PLAY. ... tells you how long it takes money to double in value for a given compound interest rate tells what compound interest rate is required for an investment to double over a period of time - # of years to double = 72/r
Rule of 72 says it will take you 18 years to double your money at a 4% interest rate when the actual answer is 17.7 years so it's pretty close. That's what's in red right there. You can see so I have plotted it here the curves are pretty close.
Mon May 30 2016...
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