The Rule of 72
A) can be used to determine the amount of time it takes to double an investment.
B) is fairly accurate for interest rates between 25 and 50 percent.
C) states that the time to double your money (TDM) approximately equals 72/i, where 72 represents the years it takes to double your investment.
D) None of the above describe the Rule of 72.
Answer: A
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FIN202 Chapter 5
- Which of the following statements is false with respect to the present value of a future amount?
- Which of the following statements is true?
- Which of the following statements is true?
- Your aunt is looking to invest a certain amount today. Which of the following choices should she opt for?
- Using lower interest rates will
- Using lower discount rates will
- Using higher interest rates will
- Using higher discount rates will
- Which one of the following statements is NOT true?
- Which one of the following statements is NOT true?
- The process of converting future cash flows to what its present value is
- The process of converting an amount given at the present time into a future value is called
- Which one of the following statements is true?
- Future value measures
- Which one of the following statements is NOT true?
- Which one of the following statements is NOT true?
- The time value of money refers to the issue of
If the answers is incorrect or not given, you can answer the above question in the comment box. If the answers is incorrect or not given, you can answer the above question in the comment box.