2 years ago

Becky tells her friend about the Rule of 72 and her friend immediately

Mathematics

1 answer:

yaroslaw [1]2 years ago

3 0

Answer:

a. the investment earns 4%

b. yes

Step-by-step explanation:

The "rule of 72" says that an investment earning compound interest at x% will double in value after 72/x years. That is, ...

f(x) = 72/x

We interpret f(4) to mean Becky's friend is interested in the doubling time for an investment that earns 4% interest.

Using the above formula, ...

f(4) = 72/4 = 18

The friend's math is correct.

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