Show how the Rule of 72 can be used to approximate the number of years to quadruple an investment.
Answer to relevant QuestionsShow the time line for a $500 cash inflow today, a $605 cash outflow in year 2, and a 10 percent interest rate.Compute the value in 25 years of a $1,000 deposit earning 10 percent per year.Compute the present value of $1,000 paid in three years using the following discount rates: 6 percent in the first year, 7 percent in the second year, and 8 percent in the third year. What is the value in year 10 of a $1,000 cash flow made in year 3 if interest rates are 9 percent?You invested $3,000 in the stock market one year ago. Today, the investment is valued at $3,750. What return did you earn? What return would you suffer next year for your investment to be valued at the original $3,000? ...
Post your question