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Q: growth of funds ( Answered,   1 Comment )
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?
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,
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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