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Slav-nsk [51]
3 years ago
8

The rule of 72 is used to determine how long it will take an investment to ___. For an Investment of $5,000 earning 7% annually,

this will take about ___ years.
Mathematics
1 answer:
Gnom [1K]3 years ago
5 0

Answer:

The rule of 72 is used to determine how long it will take an investment to Double

For an Investment of $5,000 earning 7% annually, this will take about ten years

Step-by-step explanation:

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 72 by the interest rate

Example:

If you want to know how long it will take to double your money at 9% interest, divide 72 by 9 you will get 8 years

The formula of the rule of 72 is Y = \frac{72}{r}

Let us complete the missing

The rule of 72 is used to determine how long it will take an investment to Double

The missing word is "Double"

∵ The investment is $5,000

∵ The annual interest is 7%

- By using the rule of 72

∵ Y = \frac{72}{r}

∵ r = 7

∴ Y = \frac{72}{7}

∴ Y = 10.29

- Round it to the nearest year

∴ Y ≅ 10 years

For an Investment of $5,000 earning 7% annually, this will take about ten years

The missing word is "ten"

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