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Subject:
growth of funds
Category: Business and Money Asked by: drew1952-ga List Price: $2.00 |
Posted:
20 Mar 2006 12:27 PST
Expires: 19 Apr 2006 13:27 PDT Question ID: 709669 |
if you earn 6 percent per year on your bank account, how long will it take an account with $100 to double to $200? |
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Subject:
Re: growth of funds
Answered By: paul_b_18-ga on 20 Mar 2006 13:13 PST |
Hi drew1952, Assumed that the interest is payed once per year, it will take you twelve years: 100 x 1,06^12 = 201,2196471835550329409536 Kind regards, paul_b_18-ga |
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Subject:
Re: growth of funds
From: jack_of_few_trades-ga on 20 Mar 2006 13:28 PST |
This is a perfect example of the "Rule of 72". If you divide the interest rate into 72, it tells you the number of years until your money doubles. 72 / 6 = 12 years (as Paul calculated with a different method... but I can't pass up the chance to explain the amazing Rule of 72) |
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