The rule of 72 says that to find the number of years required to double your money at a given interest rate, you just divide the interest rate into 72.
so in this equation we would use: 72/x=12 then you solve for X
X = 6%
So it would take approximately 6% ROI
Answer:
The responsibilities of the Federal Reserve include influencing the supply of money and credit; regulating and supervising financial institutions; serving as a banking and fiscal agent for the United States government; and supplying payments services to the public through depository institutions like banks.
Answer:
(D) franchising.
Explanation:
The franchising is an innovative idea to increase the sales of the company brand through which the company can able to capture maximum market size across the work. This strategy works with the motive to expand the business.
In this, there are two parties i.e franchiser and franchisee. The franchiser sells its logo, name, rights to the outlets that we called franchisee. For this, the franchiser gets the lump sum payment and profit share, etc.
Answer:
The effective annual rate of interest is "10.38%".
Explanation:
The given values are:
Nominal annual interest rate,
Q = 10%
i.e.,
= 0.10
Quarterly compounding,
q = 4
Now,
The effective annual rate of interest will be:
= ![[{1 + (\frac{Q}{q} )}^q] - 1](https://tex.z-dn.net/?f=%5B%7B1%20%2B%20%28%5Cfrac%7BQ%7D%7Bq%7D%20%29%7D%5Eq%5D%20-%201)
On substituting the given values in the above formula, we get
= ![[{1 + (\frac{0.10}{4} )}^4] 1](https://tex.z-dn.net/?f=%5B%7B1%20%2B%20%28%5Cfrac%7B0.10%7D%7B4%7D%20%29%7D%5E4%5D%20%201)
= ![[(1 + 0.025)^4] - 1](https://tex.z-dn.net/?f=%5B%281%20%2B%200.025%29%5E4%5D%20-%201)
= 
= 
= 
On converting it into percentage, we get
= 
%
