Answer:
The value of the investment at the time of his first deposit is $1,000.
At the end of the first year, the investment will be worth $1,070.
Explanation:
The value of a deposit investment is determined by the interest rate and time. Time affects the value of an investment by this small-scale businessman in many ways. The passage of time increases the value of his investment. However, the total increase may not be due to the interest rate, but inflation also affects asset's value. For this businessman to make a gain in the investment, the interest rate must be higher than the inflation rate. Otherwise, the investment loses money due to the effects of inflation, which reduces the real value of an asset over time.
Answer:
Installing equipment, designing systems, gathering information
Answer:
a. doubles every 70/X years.
Explanation:
The rule of 70 calculates the amount of years it takes for an investment to double given its growth rate.
for example, an investment has a growth rate of 7%, the amount of years it would take the investment to double is 70 / 7% = 10 years
