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1 answer:
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Answer:
Matthew's money will double fastest in 6 years.
Step-by-step explanation:
<u><em>The complete question is</em></u>
Answer the question for each scenario<u><em> by applying the rule of 72</em></u>. How many years will it take each situation to double its money? Situation A: Matthew invests $5,000 in an account with a compound interest rate of 12%. Situation B: Morgan invests $2,500 in an account with a compound interest rate of 8%. Situation C: Maysen invests $10,000 in an account with a compound interest rate of 4.5%. Whose money will double fastest?
we know that
The <u><em>Rule of 72</em></u> is a simple way to determine how long an investment will take to double given a fixed annual rate of interest. By dividing 72 by the annual rate of return.
so
Situation A: Matthew invests $5,000 in an account with a compound interest rate of 12%
Situation B: Morgan invests $2,500 in an account with a compound interest rate of 8%.
Situation C: Maysen invests $10,000 in an account with a compound interest rate of 4.5%
therefore
Matthew's money will double fastest in 6 years.