Today we studied about The Rule of 72. We can use this rule to calculate the "Interest Rate" and the "# of years to double" your amount of money. Here is the formula:

(Interest Rate) x (Years to double) = 72.

Because I can't find today's slide so I don't remember the question we did so clearly. It was like: You invest your money in 2 ways: $1200 a year or $100 a month with the interest rate 6% in 1 year. Compare those 2 ways. Here is my answer for this question:

a) $1200 a year: b) $100 a month:

N=1 N=12

I%=6 I%=6

PV=0 PV=0

PMT=-1200 PMT=-100

FV=alpha+solve = 1200 FV=1233.556

P/Y=1 P/Y=12

C/Y=1 C/Y=12

If you invest your money $100 a month , you will gain extra:

$1233.556 - $1200 = $33.556

Next scribe is Ari5

## Wednesday, April 30, 2008

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