1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
s2008m [1.1K]
3 years ago
10

How does inflation relate to the rule of 72? How does saving money in an account with compound interest help protect you from in

flation?
Social Studies
2 answers:
german3 years ago
4 0

Answer:

The Rule of 72 is also used to determine how long it takes for money to halve in value for a given rate of inflation. For example, if the rate of inflation is 4%, a command "years = 72/inflation" where the variable inflation is defined as "inflation = 4" gives 18 years.

Money in savings accounts will earn compound interest, where the interest is calculated based on the principal and all accumulated interest.

Explanation:

Brrunno [24]3 years ago
3 0

The rule of 72 is a formula used to measure the approximate time it will take for an investment to double. The word "approximate" should be highlighted, as it is not a 100% exact formula.

The formula used is to divide 72 between the interest rate paid by the investment. The result is the number of years in which the capital invested will double.

It is important to mention that at the interest rate or return on your investment you must subtract the inflation. For example, if the annual rate of return is 15%, and inflation is 5% per year, your net rate is 10%.

For example, if you have an investment of $ 10,000 in a mutual fund, which pays you 10% per year. If you calculate 72/10, you will see that your investment will double in 7.2 years.

Now, if there is an annual inflation of 2%, the calculation should be 72 / (10-2), with which the investment will double in 9 years.

You might be interested in
When Tobias passed his driver's exam, the song Fire and Rain by James Taylor was playing on the radio. Now, whenever Tobias hear
OverLord2011 [107]

Answer:

conditioned response

Explanation:

Based on the information provided within the question it can be said that Tobias's joyful reaction to the sad song can be classified as a conditioned response. This term refers to an automatic response that has been trained to occur to an specific neutral stimulus. Which in this case since the song was playing during a joyfull moment in Tobias's life then he has associated that song to joy even though it is a sad song.

4 0
4 years ago
A dependent sometimes may claim a personal exemption on his or her own return.
disa [49]
This statement is false.
A dependent cannot claim a personal exemption on his or her own return. However, what a dependent can do is claim a limited standard deduction, which may or may not be granted. 
6 0
3 years ago
What happened to Britain after Roman armies abandoned the area during the 400s?
Liono4ka [1.6K]
They were ok according to my history book
3 0
3 years ago
Read 2 more answers
1. What is an economic system?​
Leni [432]

Answer: An economic system is a means by which societies or government organize and distribute available resources, goods and services across a geographical location. There are varieties of economic system in use throughout the world today. Example of some of them are capitalism, socialism, communism, etc.

An economic system is an economic order, a system of production, resource allocation and distribution of goods and services within a defined territory. It involves the corporation of the various institutions, agencies, entities , decision making processes. All economic structure are based on three different questions, which are what to produce? How to produce ? and for whom to produce? . Economic system involves how these agencies and institutions are linked together and how informations flows between them.

7 0
4 years ago
Read 2 more answers
When did the germans use the poison gas in world war 1 and can I get some facts
lesya [120]
<span> The first recorded gas attack was by the French. In August 1914, the French used tear gas grenades containing xylyl bromide on the Germans a</span> poison gas attack meant soldiers having to put on crude gas masks and if these were unsuccessful, an attack could leave a victim in agony for days and weeks before he finally succumbed to his injuries.
3 0
3 years ago
Other questions:
  • When human beings create a government they willingly give up some of thier freedom?
    13·2 answers
  • Sixteen-year-old Yung Sun has been dating Marcus for 2 months. She believes that no one has ever been in love as much as she is
    7·1 answer
  • oil industry lobby groups have been able to strongly influence the Texas Railroad Commission's three commissioners instead of ha
    5·1 answer
  • In Kentucky county government who leads the executive branch
    11·1 answer
  • Which is a procedure that enables voters to reject a measure adopted by the legislature?
    10·1 answer
  • REPORT: NEW WORLD EXPLORERS I will literally love you forever
    5·2 answers
  • Pls help i will mark brainliest
    9·1 answer
  • Can someone answer this?
    13·1 answer
  • What led to a drastic reduction in Ku Klux Klan membership just after 1871?
    10·1 answer
  • write a model of speech on the topic development of country is impossible without the production of skilled manpower​
    8·2 answers
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!