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Interest Mary Klingman invests $15,000 in an account
Chapter 2, Problem 76A(choose chapter or problem)
Problem 76A
Interest Mary Klingman invests $15,000 in an account paying 7% per year compounded annually.
a. How many years are required for the compound amount to at least double? (Note that interest is only paid at the end of each year.)
b. In how many years will the amount at least triple?
c. Check your answer to part a using either the rule of 70 or the rule of 72, whichever applies.
Questions & Answers
QUESTION:
Problem 76A
Interest Mary Klingman invests $15,000 in an account paying 7% per year compounded annually.
a. How many years are required for the compound amount to at least double? (Note that interest is only paid at the end of each year.)
b. In how many years will the amount at least triple?
c. Check your answer to part a using either the rule of 70 or the rule of 72, whichever applies.
ANSWER:
SOLUTION:
Step 1 of 4:
In this question, Mary Klingman invests $15,000 in an account paying 7% per year compounded annually. (a) Find how many years are required for the compound amount to at least double. (b) Find in how many years will the amount at least triple. (c) Check your answer to part a using either the rule of 70 or the rule of 72, whichever applies.