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
You are surfing the internet and find a new computer game that looks pretty cool. The website asks you to read through the condi
maria [59]

Answer: They could sue, ban you from the game, or give you a warning

Explanation:

Hope THIS hElPs!

4 0
2 years ago
Why did people leave eurasia and migrate to the americas
Nimfa-mama [501]

Answer:Drought, flood, and temperature changes could certainly push people to move on. Climate change also affects the food supply, and anthropologists have assumed that people came to the Americas because they were following food on the hoof.

Explanation:

mark me as brainleast plss

4 0
3 years ago
Although Paul seems bright and capable to his parents and friends, he has been failing in school. Paul agrees to speak with a ps
mr Goodwill [35]

Answer:

C) Cognitive

Explanation:

According to my research on the different psychological approaches, I can say that based on the information provided within the question the type of model of behavior being used here is a Cognitive model. This is because this model refers to the scientific study of mental processes such as attention, language use, memory, perception, problem solving, creativity, and thinking. Which the aspects of "unrealistic expectations and negative thinking" fall under this category.

I hope this answered your question. If you have any more questions feel free to ask away at Brainly.

4 0
3 years ago
As a member of the Feel Power.org team, Noah explains, "I like to teach kids because I feel like I have good mentors in my life.
Karo-lina-s [1.5K]
I believe that would be the second choice.
5 0
3 years ago
Which of these is a reason that a child may be transferred to Superior Court?
12345 [234]

I would believe A would be the answer but I would need to check

8 0
3 years ago
Read 2 more answers
Other questions:
  • The chairperson of a psychology department suspects that some of her faculty members are more popular with students than are oth
    15·1 answer
  • Why were Japanese Americans sent to relocation camps during World War II?
    7·2 answers
  • PLZ HURRY I DONT HAVE A LOT OF TIME OFFERING 50 POINTS
    11·2 answers
  • Does the political cartoon declined for thanks shows a social, economic, or political impact?
    12·1 answer
  • Afghanistan was ruled by a group of religious military who
    11·1 answer
  • Why did Elbridge Gerry of Massachusetts redraw the congressional districts in his state
    12·1 answer
  • The first amendment protects citizens rights to:
    6·2 answers
  • Why is the solar system commonly represented as a scale model?
    5·1 answer
  • Pls help cash i have for the top three answers right.
    6·1 answer
  • What is the best description of a food chain? the competition among several species for the same food item o the transfer of ene
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!