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Part 1

Double your wealth.

Kant Miss Company is promising its investors that it will double their money every 3 years. What annual rate is Kant Miss promising? Is this investment a good deal? If you invest $250 now and Kant Miss is able to deliver on its promise, how long will it take your investment to reach $32,000?

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Part 1

Using the Rule of 72, what annual rate is Kant Miss promising?

2424%

(Round to the nearest whole percentage.)

Part 2

Using the time value of money equation, what annual rate is Kant Miss promising?

enter your response here%

(Round to two decimal places.)

Part 3

Is this investment a good deal?(Select the best response.)

A.

Yes. This investment is a good deal if you are earning higher than

25.99%

rate of return annually on your current investment.

B.

Yes. This investment is a good deal if you are earning lower than

25.99%

rate of return annually on your current investment.

C.

No. It is hard to tell whether this investment is a good deal or not.

D.

No. This investment is not a good deal if you are earning a rate of return lower than

25.99%

annually on your current investment.

Part 4

If you invested

$250

now and Kant Miss was able to deliver on its promise, how long would it take before your investment reaches

$32,000?

enter your response here

years(Round to two decimal places.)