# Question

You want your savings to double in a decade.

a. Explain why 7.2% interest a year would do this.

b. You might think that 10% interest a year would give 100% interest (that is, double your savings) over a decade. Explain why interest of 10% a year would actually cause your savings to multiply by 2.59 over a decade.

a. Explain why 7.2% interest a year would do this.

b. You might think that 10% interest a year would give 100% interest (that is, double your savings) over a decade. Explain why interest of 10% a year would actually cause your savings to multiply by 2.59 over a decade.

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