Personal Finance (MindTap Course List)
13th Edition
ISBN: 9781337099752
Author: E. Thomas Garman, Raymond Forgue
Publisher: Cengage Learning
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Question
Chapter 1, Problem 9DTM
Summary Introduction
To calculate:The number of years to double the money.
Introduction: Rule of 72 is one of the direct rules of finance to find the time period to double the money invested. As per this rule, one can calculate the estimated number of years in which money can be doubled. As per this rule, 72 numbers is divided by the interest rate number to find the number of years to double the money.
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Q.11:
You are considering a one-year investment. If you put up
$1,250, you will get back $1,350.
What rate is this investment paying?
1. Select one of the following questions to answer:
If I invest $1000 at 3% interest, how long will take for my money to double?
If I invest $1000 at 6% interest, how long will take for my money to double?
If I invest $1000 at 8% interest, how long will take for my money to double?
If I invest $1000 at 12% interest, how long will take for my money to double?
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?
Use the matrix given below. For each type of investment, record this
information: • Is the risk high, moderate, or low? • Is the return high,
moderate, or low? • How does this type of investment work? Explain
in one or two sentences.
Chapter 1 Solutions
Personal Finance (MindTap Course List)
Ch. 1.1 - Prob. 1CCCh. 1.1 - Prob. 2CCCh. 1.1 - Prob. 3CCCh. 1.1 - Prob. 4CCCh. 1.2 - Prob. 1CCCh. 1.2 - Prob. 2CCCh. 1.2 - Prob. 3CCCh. 1.3 - Prob. 1CCCh. 1.3 - Prob. 2CCCh. 1.3 - Prob. 3CC
Ch. 1.4 - Prob. 1CCCh. 1.4 - Prob. 2CCCh. 1.4 - Prob. 3CCCh. 1.5 - Prob. 1CCCh. 1.5 - Prob. 2CCCh. 1.5 - Prob. 3CCCh. 1.5 - Prob. 4CCCh. 1.6 - Prob. 1CCCh. 1.6 - Prob. 2CCCh. 1.6 - Prob. 3CCCh. 1.6 - Prob. 4CCCh. 1 - Real Income. Joshua Vermier of Sacramento,...Ch. 1 - Prob. 2DTMCh. 1 - Prob. 3DTMCh. 1 - Prob. 4DTMCh. 1 - Using the present and future value tables in...Ch. 1 - Inflation. Laureen Mauers salary a year ago was...Ch. 1 - Prob. 7DTMCh. 1 - Prob. 8DTMCh. 1 - Prob. 9DTMCh. 1 - Prob. 1FPCCh. 1 - Victor and Maria Hernandez Look at Future Income...Ch. 1 - Prob. 3FPCCh. 1 - Prob. 4FPCCh. 1 - Prob. 5FPCCh. 1 - Prob. 1BYOPFMCh. 1 - Prob. 3BYOPFMCh. 1 - Prob. 4BYOPFMCh. 1 - Present Value of a Lump Sum. Complete Worksheet 4:...Ch. 1 - Prob. 6BYOPFM
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