The television commercial pitchman tells you he can double your money with a risk-free investment in just 10 years.If this is true,what interest rate must this risk-free investment earn on an annual basis? Solve this question using the Rule of 72 and then in a more exact fashion using a formula,your calculator,or computer.In today's rate environment,is the interest rate that you solved for a realistic annual rate of return for a risk-free investment?
Correct Answer:
Verified
View Answer
Unlock this answer now
Get Access to more Verified Answers free of charge
Q112: A plant nursery pays $2,000 for 800
Q113: The dividends per share paid by Artisan
Q114: If interest rates are positive,then discounting increases
Q115: You win the $5,000,000 lottery that pays
Q116: Given a time period,an interest rate,and a
Q117: Lance has $3,500 but needs $7,000 to
Q118: The Rule of 72 can be used
Q119: In your first year out of college
Q120: Your father spent all of his adult
Q122: What is the Rule of 72? Why
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents