On January 1, 1980 Moses deposit $1850 into a savings account paying 5.6% interest compounded quarterly if he hasn't made any additional deposits are with drawl since then and if the interest rate has stayed the same and what year did his balance hit 3700 according to the rule of 72

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Business

Desmond Carrillo

23 March, 19:38

On January 1, 1980 Moses deposit $1850 into a savings account paying 5.6% interest compounded quarterly if he hasn't made any additional deposits are with drawl since then and if the interest rate has stayed the same and what year did his balance hit 3700 according to the rule of 72

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Bridget Underwood · Answer 1

Answer: 12.86 years.

Explanation: Rule of 72 says that to know in how many years the amount can double can be done by using the interest rate. The rule of 72 says that 72 divided by the annual interest rate will give the number of years it will take to double the amount.

Rule of 72:

Rate of interest = 5.60%/4

Number of years to double the investment = 72 : 1.4

Number of years to double the investment = 51.43/4 = 12.86 years

Therefore, it will take 12.86 years for the $1850 to get double to $3700.