Respuesta :
Answer:
Step-by-step explanation:
Situation A: 6
Situation B: 9
Situation C: 16
Whose money will double the fastest?
-Matthew's
Answer:
Matthew's money will double fastest in 6 years.
Step-by-step explanation:
In this question we have to calculate, how many years it will take each situation to double its money by the rule of 72.
formula = [tex]\frac{72}{R}[/tex] where R = Rate of interest
Situation A :
Matthew invests $5,000 in an account with a compound interest rate of 12%.
So [tex]\frac{72}{12}[/tex] = 6 years
It will take 6 years to double the investment.
Situation B :
Morgan invests $2,500 in an account with a compound interest rate of 8%.
So [tex]\frac{72}{8}[/tex] = 9 years
It will take 9 years to double the investment.
Situation C :
Maysen invests 10,000 in an account with a compound interest rate of 4.5%
So [tex]\frac{72}{4.5}[/tex] = 16 years
It will take 16 years to double the investment.
Matthew's money will double fastest in 6 years.
