In your own words, explain how compounding works. According to therule of 72, if you deposit $100 in an account that pays 9% compoundinterest, how long will it take that initial deposit to reach $200?Use the matrix given below. For each type of investment, record thisinformation: • Is the risk high, moderate, or low? • Is the return high,moderate, or low? • How does this type of investment work? Explainin one or two sentences.

According to Rule of 72, a deposit is doubled in X number of years. That X number of years is…

> In your own words, explain how compounding works. According to the rule of 72, if you deposit $100 in an account that pays 9% compound interest, how long will it take that initial deposit to reach $200?

> In your own words, explain how compounding works. According to the rule of 72, if you deposit $100 in an account that pays 9% compound interest, how long will it take that initial deposit to reach $200?

International Financial Management

14th Edition

ISBN:9780357130698

Author:Madura

Publisher:Madura

Chapter8: Relationships Among Inflation, Interest Rates, And Exchange Rates

Section: Chapter Questions

Problem 2SBD

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