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
Naily [24]
3 years ago
11

Using the rule of 70, about how much would $100 be worth after 50 years if the interest rate were 7 percent?

Business
1 answer:
lions [1.4K]3 years ago
4 0

The rule of 70 states that the doubling time or the time required to double an investment is equivalent to 70 divided by the interest rate. So in this case the interest rate is 7%, so the doubling period is:

doubling period = 70 / 7 = 10 years

 

Therefore the investment doubles every 10 years. So:

0 year = $100

10 year = $200

20 year = $400

30 year = $800

40 year = $1600

50 year = $3200

 

Answer:

<span>$3200</span>

You might be interested in
If you wanted to compare the quantity of output of a country across time periods, which of the following would you use?
SOVA2 [1]

Answer:

the best way to compare the output in quantities over a period of times will be  (D) real GDP.

this is becasue real GDP is calculated by  adjusting for the changes in prices, therefore it does not contain any changes in the prices and only reflects the increase or decrease of the output quantities.

Explanation:

4 0
2 years ago
Rouse Corporation's December 31, 2012 balance sheet showed the following: 8% preferred stock, $20 par value, cumulative, 20,000
Scorpion4ik [409]

Answer:

See bellow

Explanation:

With regards to the above, Rouse total stockholder's equity is computed as;

= Preferred stock + common stock + paid in capital in excess of par (preferred stock and common stock) + retained earnings - Treasury stock

= $150,000 + $1,950,000 + $60,000 + $27,000,000 + $7,650,000 - $630,000

= $53,730,000

7 0
3 years ago
Which investment type typically carries the least risk?
AleksandrR [38]
The investment type that typically carries the least risk is saving account
7 0
3 years ago
Using payback to make capital investment decisions
Romashka-Z-Leto [24]

Answer: Henry should purchase this plant as it pays back in less than the 6 years it will have to be replaced in.

Payback period = 3.7 years

Explanation:

Payback period is a capital budgeting strategy that shows how long it will take for cash inflow to pay off the original investment.

The formula is;

= Year before payback + Cashflow remaining till payback/ Cash inflow in year of Payback

Year before payback

= 1,200,000/ 325,000

= 3.69

= 3 years

Cashflow remaining

= 1,2000,000 - (325,000 * 3)

= $225,000

= Year before payback + Cashflow remaining till payback/ Cash inflow in year of Payback

= 3 + 225,000/325,000

= 3.69

= 3.7 years

5 0
3 years ago
Two firms decide whether to launch a new product: (i) If both firms choose to launch a new product, then each firm will receive
lisabon 2012 [21]

Answer:

don't launch

Explanation:

Game theory looks at the interactions between participants in a competitive game and calculates the best choice for the player.

Dominant strategy is the best option for a player regardless of what the other player is playing.

Nash equilibrium is the best outcome for players where no player has an incentive to change their decisions.

The payoff matrix for this question is

                                     Launch (in millions)               Don't Launch  (in millions)  

Launch (in millions)                  $40, $40                      $30, $45

Don't Launch (in millions)         $45, $30                      $50, $50

It can be seen that the best strategy for each firm is not to launch because the payoffs of not launching ($45, $50) is greater than the payoff  of launching ($40, $30)

4 0
2 years ago
Other questions:
  • A nation has a population of 260 million people. Of these, 60 million are retired, in the military, in institutions, or under 16
    15·1 answer
  • Debt Management Ratios Trina's Trikes, Inc. reported a debt-to-equity ratio of 1.83 times at the end of 2008. If the firm's tota
    14·1 answer
  • Brief Exercise 4-09 At Raymond Company, the following errors were discovered after the transactions had been journalized and pos
    8·1 answer
  • The preemptive right is important to shareholders because it a. protects bondholders, and thus enables the firm to issue debt wi
    15·1 answer
  • What is a new market?
    5·1 answer
  • John dropped out of school after the ninth grade and now must support himself though he has few skills. he is a part-time employ
    5·1 answer
  • Which of the following is true of F a c e b o o k advertisements?
    13·1 answer
  • Part 1 of 4
    10·1 answer
  • Sallie's Sandwiches​Sallie's Sandwichesis financed using 20% debt at a cost of 8%. Sallie projects combined free cash flows and
    10·1 answer
  • 2. State the accounting equation.
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!