Question: please explan the question by word not just calculation Explain what the Rule of 72 is. How can we use this when investing? Hint: assume

please explan the question by word not just calculation

Explain what the Rule of 72 is. How can we use this when investing? Hint: assume U.S. long term average annual return on stocks is approx. 10%, and on long term bonds 5%. How long will it take to double your money in Stocks? Bonds? A 50/50 mix of both? What is the mathematically correct version of the Rule of 72? Why the difference?

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!

please answer the question correct: Explain what the Rule of 72 is. How can we use this when investing? Hint: assume U.S. long term average annual return on stocks is approx. 10%, and on long term...

Please explain what the Rule of 72 is. How can we use this when investing? Hint: assume U.S. long term average annual return on stocks is approx. 10%, and on long term bonds 5%. How long will it take...

Explain what the Rule of 72 is. How can we use this when investing? Hint: assume U.S. long term average annual return on stocks is approx. 10%, and on long term bonds 5%. How long will it take to...

please help answer 2. How can we use this when investing? Hint: assume U.S. long term average annual return on stocks is approximately 10%, and on long term bonds 5%. 3. How long will it take to...

Please respond to discussion board 4 & 5 question that is shown after the discussion board rubric/requirements. Please do not copy/paste from sources. Write in own words and cite where it came from....

28-Alice generated sales of $82,000, $80,000, $81,000, and $77,000 for the past three weeks. Using a four-week moving average what is the forecast sales for the coming week? Group of answer choices...

i got 7 questions in the assignment in the PDF file on P16-17 They are all about the case story The total of the words are 1500 words without any format QUEENSLAND UNIVERSITY OF TECHNOLOGY QUT...

Please Assist me on doing the Excel files Required for Ford Company. The Attached files are the procedures and requirement and samples. Company Name Ticker Symbol Stock Market Head Quarters IRS...

please use data above and help to solve questions for the last backgraund case requirement questions China and Japan in Iron Ore Negotiation 1. Introduction At the international iron ore market, the...

FINC 350 CASE STUDY/ PROJECT Overview This project requires you to apply the concepts learned in FINC 350 course. The course has equipped you with basic financial planning skills . For this project,...

Considering the organic compound, classify each of the following transformation, some of which may be unfamiliar, as an oxidation, a reduction, or neither, For those are oxidation or tell how may...

A certain liquid product is placed in cans on an automatic filling line. The fill specification are 10 oz ± 0.5 oz. Thirty samples of size 4 have been collected at random over several hour of...

The Big Mac Index is often used to illustrate the parity condition known as _ _ _ _ _ _ _ _ _ _ _ _ _ . Group of answer choices purchasing power parity the Fisher effect the international Fisher...

On 1 March 2007 DB Limited issued R560 000 15% debentures at R98. The debentures were to be redeemed at par in four equal annual payments starting 28 February 2010. Required: Journalise the above...