Use the Rule of 72 to approximate when an investor can multiply his initial investment 75-fold,...

Question

Question

Use the Rule of 72 to approximate when an investor can multiply his initial investment 75-fold, if the interest rate is 15 ½ %.

business finance

Answer 1

Answer #1

Rule of 72 says: for investment to become n times it takes =72*ln(n)/ln(2)*1/rate=72*LN(75)/LN(2)*1/15.5
=28.93386747 years

Answer 2

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