Changing the order may not affect the answer in some situation, however it's not a rule.
4/5 divided by 1/10 is 8 the answer is 8
The rule of 72 says to divide 72 over the interest rate without the percent sign attached to it. This means we divide 72 over 9.6 to get 72/9.6 = 7.5
So the money doubles every 7.5 years. When another 7.5 years rolls around, a total of 2*7.5 = 15 years has gone by. At this point the money is roughly 4 times that of the original amount deposited.
<h3>Answer: choice B</h3>
FV = PV / (1 +r)^n
Where FV = Future Value, PV = Present Value, r = inflation rate in %,
n = number of years.
PV = $38, r = 4%, n = 3 years.
FV = 38 / (1 + 4%)^3
= 38 / (1 + 0.04)^3
= 38 / (1.04)^3 = 33.782
Hence the value 3 years from now = $33.78
Hope this helps, if you need any extra help feel free to reply to this comment.
