Student\'s Name Student Number If it will take your money 18 years to double, wh

Question

Student's Name Student Number If it will take your money 18 years to double, what is the rate of interest that you are earning? Use the Rule of 72 to help you answer this question. For each of the following, match the term in the right-hand column with its de in the left-hand column. a group of investments held in common a legal document that provides potential investors with information about an investment basic economic goods bought and sold in quantity the assets and liabilities left behind by a deceased person a person or group designated to receive a deceased person's assets a written agreement between one who purchases insurance and the insurance company the loss in value of an item over time an estimate of value made by a qualified person appraisal beneficiary commodities depreciation estate mutual fund policy prospectus

Explanation / Answer

Let initial amount be x

Final amount = 2x

2x = x * ( 1 + ( r/100) ) ^ 18

2 = ( 1 + ( r/100) ) ^ 18

1 + (r/100) = 1.03925

r = 3.925 %

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