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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.

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Harlamova29_29 [7]

In states where full disclosure isn't required, it is the responsibility of the seller to disclose any items required by law and respond honestly to any questions about the property’s condition. Therefore, the correct option is D.

<h3>What is full disclosure?</h3>

Full disclosure is the U.S. Securities and Exchange Commission's requirement that publicly traded companies should release and provide for the free exchange of all material facts that are relevant to their ongoing business operations.

It should be noted that full disclosure is when a company or individual is required to reveal the complete truth regarding a matter necessary for another party to know before entering into a sale or contract.

Full disclosure can apply to many different matters in the world of business. In this case, the seller should disclose any items required by law and respond honestly to any questions about the property’s condition.

The full disclosure principle is crucial to ensuring that there is limited information asymmetry between the company's management and its current shareholders.

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Complete question:

In states where full disclosure isn't required, whose responsibility is it to disclose any items required by law and respond honestly to any questions about the property's condition?

a. appraiser

b. buyer

c. lender

d. seller

6 0
2 years ago
What was the cultural explosion for African Americans which saw the creation of jazz music ?
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Explanation:

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